4x4 Committee on Housing City Council and Rent Board

COMMUNICATION ACCESS INFORMATION: This meeting is being held in a wheelchair-accessible location. To request a meeting agenda in large print, Braille, or on .. cassette, or to request a sign language interpreter for the 1!11 meeting, call 981-6900 (voice) or 981-6903 (TDD) at least five · (5) working days notice wrll ensure availability.

AGENDA

4 X 4 JOINT COMMITTEE ON HOUSING CITY COUNCIURENT STABILIZATION BOARD

Friday, September 15, 2017 -10:00 a.m. 2001 Center Street, Second Floor - Rent Board Law Library

1. Roll Call

2. Public Comment

3. Approval of Minutes for the Meeting of July 13, 2017

4. Update and discussion on implementation of the anti-displacement funding measures funding passed by the City Council (30 minutes)

a. Eviction Defense Contracts b. Allocation for Relocation Ordinance related cases c. Housing Retention Program contract

5. Update on status of the proposed reorganization of the Rental Housing Safety Program (10-15 mins)

6. E3 Ordinance Update (10-15 mins)

7. Soft Story Ordinance Update (10-15 mins)

8. Update on Short-Term Rental Ordinance Implementation (10-15 mins)

9. Follow-up on possible amendments to B.M.C 19.50 involving signage and disclosure in multi-unit properties with elevators. (10-15 mins)

10. Report back on Berkeley's 'golden duplex" law and impact on evictions (10-15 mins)

11. Status of Rent Board database project ( 10-15 mins)

12. Update on Tenant Protection Ordinance lease language and forms (5 mins)

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17 Sep 15 4x4 Committee Agenda

13. Discussion of possible Mure agenda items and setting a regular meeting schedule

14.Adjoumment

COMMITTEE MEMBERS: Mayor Jesse Arreguin City Council Member Cheryl Davila City Council Member Kate Harrison City Council Member.Linda Maio

Rent Board Chairperson John Selawsky Rent Board Vice-Chairperson Paola Laverde Rent Board Commissioner Christina Murphy Rent Board Commissioner Jesse Townley

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4x4 Committee on Housing City Council and Rent Board

COMMUNICATION ACCESS INFORMATION: Item 3. This meeting is being held in a wheelchair-accessible location. To request a meeting agenda in _large print, Braille, or on .. cassette, or to request a sign language interpreter fur the B meeting, call 981-6900 (voice) or 981-6903 (TDD) at least five (5) working days notice will ensure availability.

Minutes To Be Approved

4 X 4 JOINT COMMITTEE ON HOUSING CITY COUNCIL/RENT STABILIZATION BOARD

Friday, July 7, 2017-10:00 a.m. 2001 Center Street, Second Floor - Rent Board Law Library

1. Roll Call: Meeting started at 10:07 a.m. Present Mayor Arreguin, CM Cheryl Davila, CM Kate Harrison, RSB Chair John Selawsky, RBC Paola Laverde-Levine, RBC Christina Murphy, RBC Jesse Townley. Absent CM Linda Maio. Staff Present: Tim Burrows, Stefan Elgstrand, Jay Kelekian, Matt Brown, Cherie Shoquist, Jen Fabish

2. Public Comment 2 speakers

3. Approval of Minutes for the Meeting of May 5, 2017: Minutes approved without changes. Selawsky!Townley 7-0-0-1

4. Discussion on the Berkeley's golden duplex law impact on eviction protections: Rent Board staff provided an overview on the history, rational, and impact of the "golden duplex" exemption. The committee agreed to further discuss the possibility of (1) requesting that City Council amend the relocation ordinance to require relocation assistance for tenants displaced from golden duplexes; (2) adding protections for persons with disabilities, the elderly, and families with school-aged children; and (3) a residency-length requirement to qualify for the exemption.

5. Update and discussion on the anti-displacement funding and other tenant protection funding passed by the City Council: Mayor Arreguin reported that Council approved $650,000 to fund anti-displacement measures, including $300,000 for eviction defense. This appropriation will help fund the East Bay Community Law Center and the Eviction Defense Center via contracts administered by the Rent Stabilization Program (RSP), and allow for an expansion of services to populations beyond those served by the RSP's current contracts with these organizations.

6. Update on status of the proposed reorganization of the Rental Housing Safety Program: Mayor Arreguin reported that Council voted to refer to the City Manager a request to create the position of Housing Inspection and Community S(;!rvices Manager. Tim Burrows, Acting Director of the Planning Department, added that he

2125 Milvia Street, Berkeley, CA 94704 Tel: 510. 981.4919 TDD: 510.981.6903 Fax: 510. 981.4940 E-mail: rent@cityofberkeley.info - http://www.cityofberkeley.info/rent/

17 Jul 7 4x4 Committee Meeting Minutes

will be providing the City Manager with a more detailed plan for the role of this manager. an analysis about creating additional capacity within the Renal Housing Safety Program and any related budgetary impacts, and recommendations on fee modifications.

7. Update from the Ad Hoc Committee on Safety, Occupancy and Affordability of Converted Artist Warehouses and Workspaces: Commissioner Townley provided an update on the Ad Hoc Committee's two phase plan. Phase one includes ·creating an FAQ about the rights and responsibilities of landlords and tenants; requesting that Council craft a policy statement on the issues of affordability, tenant protections, and safety; and amending the Relocation Ordinance to explicitly include converted warehouses and workspaces. Phase two involves modifications to zoning regulations applicable to converted warehouses and workspaces.

8. Discussion of possible future agenda items and setting a regular meeting schedule: The Committee tentatively agreed to set the next meeting for September 15, 2017 at 10 a.m., subject to the availability of the absent Committee member. The following were proposed as future agenda items: (1) Planning Department update on the status of the Housing Inspection and Community Services Manager position and fees; (2) Soft Story Ordinance update (3) update on the status of compliance with balcony safety ordinances; (4) Tenant Protection Ordinance lease language and form update; (5) Elevator Law sign update; (6) Live/work spaces FAQ and Council policy statement update; (7) Discussion on amending the Relocation Ordinance; and (8) Review of golden duplex laws from other jurisdictions.

9. Adjournment Meeting adjourned at 11 :33 a.m.

COMMITTEE MEMBERS: Mayor Jesse Arreguin City Council Member Cheryl Davila City Council Member Kate Harrison City Council Member Linda Maio

. Rent Board Chairperson John Selawsky Rent Board Vice-Chairperson Paola Laverde Rent Board Commissioner Christina Murphy Rent Board Commissioner Jesse Townley

Rent Stabi~tion Board

Date: August 14, 2017

To: Honorable Members of the Berkeley Rent Stabilization Board

From: Honorable Members of the Habitability and Sustainability Housing Committee

By: Matthew Siegel, Staff Attorney ;~

Subject: Amendment to B.M.C. §19.50 (City Ordinance related to elevator maintenance in certain residential re;n.tal properties)

Recommendation:

Item 9.

That the 4x4 Joint Committee on Housing; City Council-Rent Board, consider and approve for recommendation to City Council that B.M.C. 19.50 be amended to include a provision that property owners of multi-unit residential properties otherwise covered by B.M.C. 19.50, to install a sign for placement at the property stating certain disclosures under B.M.C. 19.50. In addition, that the City dedicate appropriate staff to monitor and enforce said amendment and that appropriate training be provided to all applicable departments

Background and Need for Rent Stabilization Board Action:

After the Rent Board had received several complaints, some from elderly and/or disabled tenants, the Board's Habitability Committee began looking into issues pertaining to the maintenance and upkeep of elevators in multi-unit residential properties. This review resulted in the Rent Board recommending to City Council that B.M.C.19.50 be amended to increase the codified relocation benefits available to tenants who are displaced as a result of their elevator being inoperable for a period of time. City Council adopted language amending B.M.C. 19.50 at its November 29, 2016 meeting increasing the relocation benefits available to such displaced tenants.

Subsequently, the Habitability and Sustainable Housing Committee has been looking at further amendments to the B.M.C. 19 .50. Of import to the committee was creating a process where property owners would disclose the existence of the ordinance to tenants at their properties via the installation of a sign in and/or around the property.

This issue was taken up by the 4x4 Joint Committee on Housing at its May 5, 2017 meeting wherein the committee tasked the Rent Board to coordinate efforts with City staff to draft

2125 Milvia Street, Berkeley, California 94704 TEL: (510) 981-7368 TDD: (510) 981-6903 FAX: (510) 981-4910

E-MAIL: rent@ci.berkeley.ca.us INTERNET: www.ci.berkeley.ca.us/rent/

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potential signage language. The 4x4 Committee recommended that Rent Board staff work with the City's Disability Coordinator and/or Planning Department Staff. Rent Board staff reached out to both and worked in concert with the Disability Compliance Coordinator prior to reporting back to the Habitability and Sustainable Housing Committee. The Habitability and Sustainability Housing Committee prepared draft language which was reviewed by Ella Callow, the City's Disability Compliance Program Coordinator. After receiving feedback from Ms. Callow, the Committee, at its July 13, 2017 meeting adopted the attached language for consideration.

Also attached is a letter from the City's Disability Compliance Program Coordiµator supporting such language via amendments to the ordinance.

The 4x4 Committee next meets on September 15, 2017. The Habitability and Sustainable Housing Committee now asks the Board to approve the draft language for signage. The mandate that property owners provide a disclosure of the Ordinance via particular signage would necessitate an amendment to B.M.C. 19.50. The committee also seeks the Board to request the 4x4 Committee to ask Council to ensure that adequate staffing and training be provided for monitoring and/or enforcement of any policies or amendments to the Ordinance that result from these efforts. ,

Attachments: Draft Language for Sign Letter hi Support from E. Callow, Disability Service Specialist

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E-MAIL: rent@ci.berkeley.ca.us INTERNET: www.ci.berkeley.ea.us/rent/

Disability _Compliance Program

Date: August 7, 2017

Subject: Elevator Ordinance and Public Notices

Honorable members Berkeley Rental Board:

I serve as the Disability Services Specialist within the Disability Compliance Program. I began working in this position in February of 2017. In my short tenure here I have received several complaints of non-compliance with elevator accessibility, including in residential buildings. The latter is governed by Berkeley Municipal Code Chapter 19.50 "Elevators- Buildings with ten or more units and two or more stories." However, few residents or building management personnel seem to be aware ofthe ordinance and its requirements.

The Disability Compliance Program wants the relevant ordinance to be known and to be abided by, and requiring public notices in elevators would be a serviceable means to further this goal.

I support the idea _of public notices and amendment of the ordinance to require such notices, as well as other additions or revisions of the ordinance as may be needed to accomplish this.

Best regards,

-~~ 6,~---Ella Callow

Disability Services Specialist Disability Compliance Program, PW City of Berkeley '

1947 Center St., 4th Floor, Berkeley, CA, 94704, Telephone (510) 981-6418, · email: ecallow@cityofberkeley.infq, TDD (510)981-6903

DRAFT DRAFT DRAFT DRAFT

When an elevator malfunctions, the building operator must repair it at the earliest practicable time, not to exceed twenty-four hours of notice to the building operator of such malfunction. If the building operator cannot comply with this rule, due to circumstances beyond their control, they shall locate and provide alternative housing for any person residing in the building who needs to use the elevator to gain access to or to exit from their unit because of such person's impaired ability to climb stairs due to their physical disability, medical condition, ~firmity, illness or other similar circumstance.

The full text of the code section this is based on can be found in the Berkeley Municipal Code Chapter 19.50 "Elevators-Buildings with ten or more units and two or more stories."

(http:www.codepublishing.com/CA/Berkeley)

-The building manager for this building is and their contact information --------------.

IS

To get more information or to report when a building manager is not complying with this procedure, please contact the Berkeley Planning Department at ___________ _

Rent Stabilization Board Legal Department

DATE:

TO:

.FROM:

MEMORANDUM

A~14,2017

Honorable Members of the Berkeley Rent Board and Honorable Members of the 4 x 4 Joint Committee on Housing

Matt Brown, Staff Attom~

Item 10.

SUBJECT: Review of Exemptions for Small Owner-Occupied Properties in California Rent Control Jurisdictions .

Introduction:

At its July 7, 2017 meeting, the 4 x 4 Joint Committee on Housing requested a memorandum regarding exemptions related to owner occupancy in smaller multi-unit properties (namely . duplexes and ~plexes). At its July 17, 2017meeting, Rent Board CommissiQners requested that they have the opportunity to review this memorandum, as well. Staff committed to providing a copy of the memo to the Board at its August 14, 2017 monthly meeting.

Baekgnnmd and Current Law:

As originally adopted by the voters in 1980, the Berkeley Rent Ordinance fully exempted two, three, and four unit buildings ftom rent controls and eviction protections where: 1) one of the units was occupied by an owner holding at least 50% interest in the property as her principal residence on December 31, 1979; and 2) one of the units is currently occupied by an owner holding at least 500/4 interest in the property as her principal residence. 1 The voters amended this section of the Ordinance in 1982,- so that tQe exemption now only applies to duplexes. These properti~s are commonly referred to as "Golden Duplexes." .

The exemption for these properties is transitory, since it only applies when one of the units is occupied as a principal residence by a 50% owner of record. Assuming a qualifying owner does not live on the property, the Uilit(s) would be otherwise covered by all sections of the Rent

· 1 Berkeley Municipal Code Sections 13.76.0SOF and 13.76.0SOH.

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E-MAIL: rent@ei.berkeley.ca.us • INTERNET: www.cLberkeley.ea.us/reot/

'

Owner-Occapied Small Property Exemptions in CA (Rent Board and 4 x 4 Committee) August 14, 2017 Pagel

Ordinance when rented including rent contro4 registratio~ and eviction protections. The Golden Duplex exemption attaches immediately, however, once an owner begins to occupy a unit on the property as her principal residence. Therefore, as illustrated by the example of the tenant residing in a rent-controllec;l unit in a Golden Duplex reviewed by the 4 x 4 Committee at its July 7, 2017 meeting, tenants are vulnerable to eviction without good cause or rent increases to market that are not constrained by any local or state law immediately after a qualifying owner takes possession of a unit on the property.

The chart below reveals the different ways California rent control jurisdictions address these living situations:

Exemption Laws for Small Owner-Occupied Properties

c rn L\T\IP l H )'\ !ff <J l I iff \Ir'\ l , ',(_()!'[' l'H.Ol [ IH lff

Duplexes 1). SO%, Owner Fully exempt Ordinance outlines (B.M.C.§§ occupying on from all exemption - this is

Berkeley 13. 76.0S0F & 12/3l_n9; 2). 50% sections of Rent self-enforcing (Rent 13.76.0S0H) Owner currently Ordinance Board verifies)

occupymg

Duplexes and 33% Owner must Fully exempt Owner must notify triplexes live ·in property for from all· Rent Board {Oakland at least two years sections of Rent

Oakland. Municipal Code Ordinance after §§ 8.22.030D. & twoyears2

8.22350F.) .

Duplexes and 50%0wner Exempt from Must apply for triplexes occupying for at rent control but exemption ( elected (Regulation least 120 days eviction Board decides after

Santa ·Monica 12053) protections reviewing bearing remam examiner and legal

staff recommendations)

San Francisco No exemntion3 West Hollywood No exemntion Los.Am!eles No exemntion

2 oaic1and allows an owner to evict without just cause immediately after commencing occupancy as principal residence, but the rental amount for the next ~cy is restricted to the amount established by the prior tenancy until the owner has occupied a unit on the property for at least two years. 3 San Francisco previously exempted owner-occupied duplexes, triplexes and fourplexes from rent control In 1994, however, the voters passed Proposition I which eliminated all exemptions for these owner-occupied properties.

Owner-Occupied Small Property Exemptions in CA (Rent Board and 4 x 4 Committee) August 14, 2017 .Page3

Staff contacted the other cities that exempt duplexes and triplexes to gather information regarding the number of units that are currently exempt Oalcland does not maintain a registry and therefore does not have a count of how many properties qualify for the exemptions identified above. As of the writing of this memo Santa Monica has approved exemptions in 528 properties which includes a total of 1,428 units.4 nie Rent Board's database indicates that owners are currently claiming occµpancy in 422 Golden Duplexes.5

Primary Differences in Laws:

Three cities- San Francisco, West Hollywood, and Los Angeles- have no exemptions for , owner-occupied duplexes or triplexes. Of the three cities that provide·exemptions for such

properties, several important differences exist; namely:

' 1. Santa Monica's and Oakland's exemptions apply to duplexes and triplexes, but

Berkeley's exemption only attaches to duplexes; and

2. Whereas, Berkeley requires that an owner had to have lived in a unit on the property on December 31, 1979, neither Santa Monica nor Oakland have a previous occupancy requirement to activate their exemptions; and

3. Oakland allows owners with 33% recoived ownership interest to enjoy the benefits of the exemption, but Berkeley and Santa Monica both require 50% recorded interest; and

4. Both Oakland and Berkeley fully exempt tenancies from rent control and eviction protections while Santa Monica tenancies retain eviction protections; and

5. Oakland requires the property ·owner to notify the City that the property is exempt due to owner occupancy; Santa Monica requires the property owner to apply for the exemption and only the Board may grant it; while the Golden Duplex exemption in Berkeley is activated-by operation of the Ordinance which the Board verifies.6

Potential Changes to Existing Law:

The Berkeley Rent Ordinance is a voter initiated piece oflegislation. Any substantive change to the exemptions contained therein - requiring that an owner live at the property for two years in

. .

4 Santa Monica property owners must apply for exemptions which the Board then grants OT denies. 5 The Board is unable to determine how property owners are using the other units at these properties. Once the qualifying owner notifies the Board 1hat she is occupying a Golden Duplex, the entire property is completely exempt from all chapters of the Rent Ordinance. If there is a tenancy in the other unit, the owner would not be required to notify the Board of its existence. Similarly, the Board would not have any information regarding whether the owner is using the other unit for her own use or for relative occupancy OT any number of other poss1bilities. The only thing we can say with assurance is that the property is fully exempt when the qualifying owner occupies a Golden Duplex. 6 A tenant may chal1enge an exemption in Berkeley ifhe believes the owner does not qualify for it or has improperly claimed it ·

Owner-Occupied Small Property Exemptions in CA (Rent Board and 4 x 4 Committee) August14,2017 . Page4

order_forthe otherunit(s) to be exempt from the Ordinance or the elimination or further modification of this exemptio~ for example-would require a successful ballot proposition. Traditionally, the Board has made recommendations regarding proposed Ordinance changes to the 4 x 4 Committee; and Council has placed proposed changes on the ballot when it agrees to do so.

I •

Councilmember Harrison proposed that Council might consider amending the Relocation Ordinance to provide mandatory relocation assistance to tenants who are displaced by "no fault" evictions in Golden Duplexes. Legal staff believes there would be no impediment to Council amending the Relocation Ordinance to provide such relie:t: 7 Nevertheless, this is a Council. passed Ordinance~ so it would be advisable to first check with the City Attorney before formally proposing this.

Conclusion:

The Golden Duplex exemption has existed since the inception of the Ordinance. There have· been several suggestions at the 4 x 4 Committee and full Board meetings that this exemption should be amended or eliminated to provide tenancies in these properties with more protections. In order to adjust Qr extinguish the exemptio~ the voters would have to adopt the changes at the ballot. Rent control jurisdictions throughout the state offer examples of other ways to craft and admbtlster exemptions for smaller owner-occupied multi·unit properties.

Name and Telephone Number of Contact Person:

Matt Bro~ Staff Attorney Rent Stabiliz.ation Board

(510) 98.14930

7 The current Rent Ordinance very clearly exempts tenancies from eviction protections in Golden Duplexes. A requirement to provide relocation assistance, however, would not add any good causes to evict these tenancies and

. therefore would likely not conflict with the Rent Ordinance.