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2019-04-02 Special CC MinutesSpecial Meeting Alameda City Council April 2, 2019 1 MINUTES OF THE SPECIAL CITY COUNCIL MEETING TUESDAY- -APRIL 2, 2019- -5:00 P.M. Mayor Ezzy Ashcraft convened the meeting at 5:04 p.m. Vice Mayor Knox White led the Pledge of Allegiance. ROLL CALL - Present: Councilmembers Daysog, Knox White, Oddie, Vella, and Mayor Ezzy Ashcraft – 5. Absent: None. AGENDA ITEM (19-184) Recommendation to Provide Direction to Staff Regarding Various Amendments to the City’s Rent Review, Rent Stabilization, and Limitations on Evictions Ordinance (No. 3148) Which May Include Amending Various Sections of Article XV of Chapter VI Concerning Review of Rent Increases, Limitations on Evictions, Eliminating the Sunset Clause, and Making Clarifying Amendments; and (19-184A) Public Hearing to Consider an “Ellis Act” Policy and Resolution No. 15517 “Adopting a Policy Concerning the Requirements, Procedures, Restrictions and Mitigations Concerning the Withdrawal of Residential Rental Units from Rent or Lease (Ellis Act Policy).” Adopted. The Base Reuse and Community Development Director gave a Power Point presentation. Councilmember Daysog inquired whether staff has met with landlord stakeholders in the weeks leading up to the meeting The Base Reuse and Community Development Director responded in the negative; stated based on Council’s decision on the item, staff will reach out to stakeholders. Councilmember Oddie inquired how Accessory Dwelling Units (ADU’s) will be treated. The Base Reuse and Community Development Director responded ADU’s can be an independent unit on a property or within the primary home; stated a permitted ADU is treated as a single family home if the homeowner lives in the main house; if the ADU is not permitted, it is treated as two units to encourage legalization of the ADU; discussed the single family home classification. In response to Councilmember Oddie’s inquiry, the Base Reuse and Community Development Director stated all rental units are subject to the City’s termination limitations and are required to pay relocation benefits. Councilmember Oddie inquired what protections are available for residents of Cardinal Special Meeting Alameda City Council April 2, 2019 2 Point. The Base Reuse and Community Development Director responded assisted living projects in Alameda are not covered by the rent stabilization ordinance. Councilmember Oddie inquired what authority Council has to control rents at Independence Plaza. The Base Reuse and Community Development Director responded Independence Plaza is a senior affordable housing project owned by the Housing Authority; outlined Ordinance 3148 exemptions; stated the Housing Authority has committed to adopt regulatory agreements on its projects. In response to Councilmember Oddie’s inquiry, the Base Reuse and Community Development Director responded the specific ordinance is related to the duties and purpose of the Rent Review Advisory Committee (RRAC); stated Council may provide direction on amendments to be made and the role of RRAC may change; the language can be updated if requested. In response to Mayor Ezzy Ashcraft, Base Reuse and Community Development Director outlined the buyout agreement process. The Interim City Attorney stated a buyout typically occurs when a landlord and tenant reach an agreement where the tenant vacates the property for consideration. Councilmember Vella inquired about the Ellis Act move-out protections for short-term rentals such as AirBNB. The Base Reuse and Community Development Director responded when Council is presented with the AirBNB ordinance, it considers the number of days someone can rent a unit. Councilmember Vella inquired when Council will be presented with the AirBNB ordinance with Transient Occupancy Tax (TOT). The Base Reuse and Community Development Director responded the items are part of staff’s workplan; stated the AirBNB ordinance can move simultaneously with rent ordinance amendments to give continuity. Mayor Ezzy Ashcraft stated the new City Attorney arrives next month and has experience with these matters; it would be beneficial to have his input on the ordinances. Mayor Ezzy Ashcraft requested the City Clerk provide locations for meeting overflow; to which the City Clerk stated there is space in room 360 as well as the Elk’s lodge. Special Meeting Alameda City Council April 2, 2019 3 Stated renters needs just cause and a cap lower than 5%; needs of seniors and disabled should be considered: Jan Santos, Alameda Renters Coalition (ARC). Stated rent increase will create more homelessness and cause families split up; her rent has doubled during the last 10 years: Patty Nash, Renter. Discussed her experience as a renter; expressed concern over the Rent Review Advisory Committee process: Tristen Schmidt, The Village. Urged adoption of a cap on rents and just cause : Katya Schiesser, ARC. Discussed her rental situation: Diana Cabcabin, Filipino Advocates for Justice (FAJ). Discussed rent and income statistics: Alyssa Morisado, FAJ. Expressed support for a rent cap and just cause, and concern over students having to leave Alameda: PJ Tigas, FAJ/BY6. Stated her landlord does not do repairs because he wants her family to leave : Pauline Roxas, FAJ. Expressed concern over the 5% rent increase: Sabrina Igat, FAJ. Discussed the need for just cause and a rent cap: Frida Schiesser, ARC. Stated that she has become the union representative for the National Association of HUD Tenants (NAHT) Urged Council to contact her if people need help: Bunny Duncan, NAHT. Urged changes be made to the ordinance to assist renters: Lester Dixon, FAJ. Expressed support for everyone coming out to support renters: Doyle Saylor, Renewed Hope. Stated renter protection is needed: Wes Swedlow, Alameda. Urged Council to support rent control and just cause: Austin Tam, Buena Vista United Methodist Church. Stated stronger rent control is needed to prevent the displacement crisis; 5% is too high: Zac Bowling, Alameda. Stated her landlord would only increase rents when tenants left prior to the ordinance and now increases rents by 5% every year: Cheri Johansen, Alameda Progressives. Stated just cause eviction is needed and 5% does not work; suggested the cap be Special Meeting Alameda City Council April 2, 2019 4 2.5%: Rob Hayes, Alameda. Expressed support for rent stabilization; discussed his rental situation and wages: Keegan Tatum, Alameda. Stated the Council gave unions 9% raises over four years; outlined the School District salary increases; stated in four years, rent could increase 20%: Al Wright, Alameda. Compared her rent increases to her Social Security increases: Toni Grimm, Alameda. Stated that he is not opposed to rent contro l; suggested a process allow Ordinance 3148 to sun set and create new regulations: Jay Garfinkle, Landlord. Expressed concern over the 5% rent cap: Steve Scheisser, Alameda. Stated that she supports just cause eviction in the CASA Compact; a rent cap below 5% is needed; a rate of return for landlords should not be guaranteed : Laura Thomas, Renewed Hope. Discussed his friend being priced out of Alameda: Bill Rowen, Alameda. Discussed her rental situation: Irma Garcia-Sinclair, ARC. Stated a lower rent cap is needed ; expressed concern over the years included in the Ellis Act: Catherine Pauling, ARC. Stated that she has been a landlord for 30 years ; she would prefer to sit down together and work things out; large corporations are usually the problem: Karen Bey, Alameda. Discussed the rent cap and landlord expenses: Tony Charvet. Discussed Ordinance 3148 and 5% not being enough for landlords: Malcom Lee. Stated existing renters need to be protected from large rent increases and evictions without cause: Sophia DeWitt, East Bay Housing Organization. Discussed Section 8, which should be continued; stated some landlords need to raise rents: Leslie Carter, Alameda. Discussed fairness: Richard Neveln. Expressed support for rent control and concern over how she will pay her rent increase: Abeba Moldemuriam, Alameda. Discussed his rental situation; urged adoption of just cause; stated 5% is too high : Rasheed Shabazz, Alameda. Special Meeting Alameda City Council April 2, 2019 5 Councilmember Oddie stated housing is a basic human right; due process is needed, including just cause; the time for a hard rent cap is now; staff should return to Co uncil with analysis of a proper rent cap; Costa Hawkins exemptions should be in place to allow for relocation benefits; he would like to see the changes in Ordinance 3180 come back; proof of payment should be required when passing on 50% or more of pass- through fees; the Ellis Act year limits should be five and ten year increments for penalties; there should be a cap on the number of days a short tem rental such as AirBNB can be rented; relocation benefits should go through HUD; additional relocation benefits should be awarded to seniors and those with disabilities; progress is being made on the rent registry; discussed the rent cap and RRAC process; stated carve-outs would not provide benefits for those in commercial rental units; ADU’s allow for carve - outs; requested families with school-aged children have evictions delayed until the end of the school year. Vice Mayor Knox White concurred with Councilmember Oddie’s statements; stated the hearing is due; just cause should return to Council as soon as possib le; staff should reach out to landlords to discuss items not included in the current list of allowable reasons for cause; rent caps become an issue for those who wish to increase rent higher than the allowable cap; CPI should not be used and staff should f ind a way to ensure people are not receiving unaffordable rent increases; there should be a process for fair rate of return on rental property for landlords. Councilmember Daysog outlined the history of rent increases for the City; showed slides with data provided by a local blog; stated the City should continue with Ordinance 3148; outlined average rent data from the US Census and American Community Survey (ACS) Census Bureau. Mayor Ezzy Ashcraft requested the City Clerk provide details for the remai ning meeting agenda, to which the City Clerk outlined the process. *** Mayor Ezzy Ashcraft called a recess at 7:01 p.m. and reconvened the meeting at 8:18 p.m. *** Councilmember Daysog stated that he would like staff to work with a technical working group consisting of landlord and renters to deal with various exhibits, to gain stakeholder input, and have the input relayed to Council. Vice Mayor Knox White stated the data presented by Councilmember Daysog based on the blog post is incorrect; outlined incorrect no cause eviction data; stated it is important to understand that no cause evictions have increased; many speakers stated they cannot afford their rent increases; he would like to know how many people are receiving increases that are unaffordable causing them to leave town. Special Meeting Alameda City Council April 2, 2019 6 Councilmember Vella stated no cause evictions have increased; recommendations should not be based off blog posts and should be based off data and actual analysis; there are a number of big issues that staff has been tasked with looking into; 58% of people in Alameda have experienced a rent increase; requested the number of people who have been displaced as a result of rent increases; stated the ordinance has had unintended consequences; just cause should return to Council so oner rather than later, with an AirBNB regulation and review; AirBNB is taking rental units off the market; 90 days for AirBNB is not enough of a regulation; expressed support for a 30 or 45 day cap on AirBNBs; requested the budget costs be included in the report back; expressed support for having staff return with a rent cap; expressed concern with the RRAC and its processes; stated a registry should happen, but the data should be properly comprised; expressed support for Costa Hawkins exempt properties with a constructive eviction requiring relocation benefits; stated a subcommittee would be a biased and selective way to do analysis; requested staff speak with different people; stated a housing policy does not exists Country-wide, a system for property ownership exists; decisions should be made based on community, compassion, and empathy for those who have experienced housing insecurity; more housing units are needed; expressed support for Councilmember Oddie and Vice Mayor Knox White’s proposals. Mayor Ezzy Ashcraft outlined data provided at League of Women Voters meeting; stated every city must do its part to aid the housing crisis; the RRAC program as developed in the 1970’s, under a different mindset and outlook; expressed support for a rent cap; discussed her approval of the original rent cap; stated CPI should be looked at as it provides hard data; expressed support for Ellis Act and the 5-year limit; stated relocation benefits should follow the HUD model; stated money would be better spent toward hearing officers versus the RRAC program; expressed concern with the personal nature of information that is provided by tenants; expressed support for removing no cause evictions; expressed concern over requests for repairs going unexpressed due to fear of retaliation by landlords; expressed support of buyouts and constructive evictions; stated landlords should develop a contributable fund where smaller landlords can petition to use the funding for potentially unaffordable costs such as relocation benefits; more affordable housing must be built; splitting fees should not be counted toward the cost of rent. Councilmember Daysog stated hard data shows Ordinance 3148 is working; Council should work within the ordinance; the ordinance can be modified with renters working with mom and pop landlords; the ordinance should not be replaced altogether; the data shows the ordinance should be kept and modified as needed, if necessary. Councilmember Oddie stated the intention of the 5% rent cap was to be a cap, not the floor; the formula to help buildings from having mass evictions was not successful. The Base Reuse and Community Development Director recounted Council’s direction. Mayor Ezzy Ashcraft stated that she supports reaching out to the community, but a subcommittee is not necessary. Special Meeting Alameda City Council April 2, 2019 7 Councilmember Oddie stated that he is happy to hear from the public, but it should not hinder the process. The Base Reuse and Community Development Director stated it is possible to come back at the second meeting in May with ch anges; the maximum allowable rent increase may have to come back in June; the goal is to bring just cause back at the second meeting in May for Council action. Vice Mayor Knox White requested a broader approach to the outreach on rent caps. The Base Reuse and Community Development Director stated staff will look at the time- frame to come back to Council for the AirBNB ordinance; inquired if there is a desire from Council to have AirBNB come back with just cause, in which there may be a delay with just cause coming back for consideration. Councilmember Vella inquired when the Ellis Act portion is coming back for Council consideration to which the Base Reuse and Community Development Director responded the action is currently being discussed. Councilmember Vella stated the AirBNB portion may return in July. Mayor Ezzy Ashcraft stated just cause should take priority. The Base Reuse and Community Development Director stated just cause will return at the second meeting in May; staff will return with rec ommendations to the maximum allowable rent increase, rent increase banking, the role of RRAC versus hearing officers, maximum rent caps and the impact on the budget; the item will come back as a standalone ordinance; outlined the amendments provided for consideration; stated staff will discuss the proposed amendments with members of the community. Councilmember Vella inquired which items Councilmember Daysog specifically requested be looked at; expressed concern about one Councilmember providing direction to staff versus Council as a body providing direction. Vice Mayor Knox White inquired if requests for modifications from Councilmember Daysog are being considered. Councilmember Daysog stated that his goal is to obtain stakeholder input for people to gain landlord perspective. The Base Reuse and Community Development Director responded the proposed amendments have been vetted since the spring of 2017 when the ordinance was adopted; stated if the Council desires a review of the items within the communi ty, staff will facilitate the discussion. Special Meeting Alameda City Council April 2, 2019 8 Mayor Ezzy Ashcraft stated the items listed by Councilmember Daysog relate to Exhibit 2 of the staff report; expressed support for leaving the items as-is and moving forward; stated there is not a pressing need to go back. Councilmember Oddie stated passing on 50% of the rental fee should be reviewed. The Base Reuse and Community Development Director stated staff’s recommendation is to have the portion of the rent fee passed onto the tenant not be part of the ren t cap; inquired if staff may review the items listed in Exhibit 2 to determine which might be moot based on the current discussion. Councilmember Vella stated the direction from the majority of Council is to have the staff analysis done, but it should not hold up just cause or the rent cap conversation and should be standalone ordinances. The Base Reuse and Community Development Director stated Council should take action on just cause eviction protections and on the maximum allowable rent increase so staff may know what the ordinances should require. Vie Mayor Knox White stated that he spoke with many landlord groups while campaigning; outlined responses from landlords related to just cause and Measure K; stated the issue should return to Council as timely and soon as possible. The Base Reuse and Community Development Director stated the new ordinances should be checked against policy to ensure consistency and relevant changes are made. Councilmember Oddie stated that he will not support changes, but staff should be prepared to answer questions should they arise. The Base Reuse and Community Development Director inquired whether Council wants to proceed with changes to relocation benefit formulas. Mayor Ezzy Ashcraft responded the annual report fo r the rent program is coming in September, and that would be the right time to consider changes. The Base Reuse and Community Development Director stated the changes will be incorporated into the discussion in September; staff is requesting Council to ado pt the Ellis Act policy tonight. Vice Mayor Knox White inquired who will be tracking properties affected by Ellis Act policy; expressed support of the 2-year provision if proper tracking is executed. The Base Reuse and Community Development Director responded there will be a requirement to record that an Ellis Act termination has occurred against the title of a property, along with providing the contact information of the in -place tenant; stated the Special Meeting Alameda City Council April 2, 2019 9 current operation is complaint based; Ellis Act terminations will provide certainty with the provision recorded on the title of the property. The Interim City Attorney stated a number of forms have been created to provide to both landlords and tenants to track the policy. Councilmember Oddie expressed support for the 5 and 10 year provision under Ellis Act terminations; inquired if changes need to be made. The Base Reuse and Community Development Director responded that changes are not needed, the penalty is independent of the maximum allowable rent incre ase; stated a rent only 5% higher than the in-place tenant can be charged if the unit is rented within 5 years. Councilmember Vella expressed support for adopting the Ellis Act policy; stated if changes need to be made in the future after just cause, the issue can be agendized. Councilmember Vella moved adoption of the resolution, with direction to have it agendized with just cause to allow amendment. Councilmember Oddie seconded the motion, which carried by unanimous voice vote – 5. ADJOURNMENT There being no further business, Mayor Ezzy Ashcraft adjourned the meeting at 8:59 p.m. Respectfully submitted, Lara Weisiger City Clerk The agenda for this meeting was posted in accordance with the Sunshine Ordinance.