Alameda looks to button up its rent and eviction controls

Landlords in Alameda have had no shortage of uncertainty over the years with rent and eviction controls in a constant state of flux. The most recent changes took place in June, when “just cause” eviction protections were ushered in delineating the reasons why a tenant can be evicted (i.e., failure to pay rent, breach of lease, nuisance, failure to give access and the like). The city will now tinker with the law once again on September 3, 2019 and condense many parts into a comprehensive package of legislation.

We’ll summarize amendments here.

Adding numerous definitions and clarify what units are exempt from the ordinance.

Exactly which units are subject to rent and eviction controls have been a source of confusion. Certain “covered” properties are subject to rent control provisions effective September 1, 2108. With respect to “non-covered” properties, rent increases in excess of 5% will be reviewed, along with optional review of rent increases of 5% or less.

Increase from one year to three years the length of time that an owner must reside in the unit following an owner move-in eviction (OMI).

If a landlord intends to move into his or her property and use it as a principal place of residence, the owner is allowed to evict a tenant, with several caveats. This kind of eviction is known as OMI and it is commonplace in Bay Area locales to require the owner to live in the property for 36 continuous months. Alameda’s current rule has been more relaxed - the owner need only live in the unit for one year, though this window will be bumped up to 3 years if the proposal comes to pass.

More on OMIs in our in-depth guide

Mandate relocation payments when rent increases of more than 10% lead to tenant displacement.

When the tenant is staring at rent increases they cannot afford, the tenant would have the right to vacate rather than pay the rent hike if it exceeds 10%. For those tenants who elect to leave the residence and refuse to pay the spike in rent, relocation payments will be triggered. Currently, relocation payments are required under limited circumstances, namely when the tenant is displaced because of an OMI, demolition of the unit, Capital Improvement Plan, permanent withdrawal from the rental market, or compliance with a government order.

Moreover, it is proposed that permanent relocation payments across the board are tied to fair-market rents instead of adjustments to the Consumer Price Index.

Permit buyout agreements

Bornstein Law brokers quite a lot of tenant buyout agreements in other locales. Likened to "cash for keys," a buyout agreement is a contract where typically, in exchange for compensation or rent waiver or both, a tenant agrees to voluntarily vacate the premises and release all claims arising out of the tenancy. A proposal is being floated to make this vehicle available to rental property owners in Alameda. We’ve provided an overview in this video.

Allow landlords to pass through 50 percent of the rent program fee without being included in the calculation of a rent increase.

As of August 2019, Alameda’s program fee hovers at $106 per unit that was rented or available to rent as of July 1, 2019. The city has made it clear up up until now that the program fee cannot be passed through to tenants, an act construed as a rent increase and unpermitted unless it is part of a rent increase established by the program.

Extend eviction protections to Section 8 voucher holders and consider a fair housing ordinance that would prohibit discrimination, including source of income, age, disability, and family status.

We have written extensively about Section 8 tenancies and invite you to visit our blogs on this topic, and peruse our section relating to fair housing laws, a timely subject given the proliferation of lawsuits initiated by tenants or their attorneys.

To navigate this ever-changing regulatory regime, get in touch.

Contemplated amendments to landlording rules are a mixed bag of both bad and sensible proposals, but you can rely on Bornstein Law to keep you up to date and help rental property owners survive and thrive in this challenging legal landscape.

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