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Home My WebLink AboutMinutes 2019-01-09 @6:00MINUTES SPECIAL MEETING 0 F � l� "CITY COUNCIL o91 1poR��' CITY OF SOUTH SAN FRANCISCO Meeting to be held at: MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, JANUARY 9, 2019 6:00 p.m. CALL TO ORDER 6:02 p.m. ROLL CALL Present: Councilmembers Addiego, Nagales, and Nicolas, Vice Mayor Garbarino, Mayor Matsumoto. AGENDA REVIEW None. ADMINISTRATIVE BUSINESS 1. Report regarding tenant protection and anti -displacement measures. (Alex Greenwood, Economic & Community Development Director) Economic & Community Development Director Greenwood presented the report and stated that the measures will support the City Council's discussion on renter protection and anti -displacement measures. He indicated that the report was developed by 21 Elements, a consortium of cities in San Mateo County and the County of San Mateo that work together to tackle housing issues facing the region as a whole. Residential displacement occurs when a household is forced to move from its residence due to rent increases or loss of housing, despite the household having met all other conditions of their lease. Director Greenwood stated that displacement is occurring throughout the Bay Area in many different forms, including: evictions, demolitions, rent increases, and/or physical renovations or changes in use. This often results in the tenants becoming unable to find housing in a neighborhood that was previously accessible and affordable. He stated that there are several tenant protection and anti -displacement policies that the City of South San Francisco already employs. These include the following: Single -room occupancy (SRO) preservation. The City's Zoning Ordinance, Title 20 of the South San Francisco Municipal Code (SSFMC), permits SROs where they currently exist; Condominium conversion regulations. The City's Subdivision Ordinance, SSFMC Title 19, provides specific protections for tenants of residential units proposed to be converted to condominiums. This includes relocation assistance, freezing of rent increases, options to purchase, and specific noticing requirements. Commercial linkage fee/program. The City assesses a commercial linkage fee on developers per square foot of new commercial development. Revenues are used to develop or preserve affordable housing. Housing trust fund. The City's Housing Trust Fund, Fund 205, is funded by in -lieu fee payments, developer contributions, and commercial linkage fees. The Fund is dedicated to supporting affordable housing construction and programs. Density bonus ordinance, the City Council introduced a new ordinance repealing and replacing SSFMC Chapter 20.390, Bonus Residential Density, which outlined how the City accommodated the State Density Bonus. Additionally, the City affords developers the opportunity to seek additional, bonus density in the Downtown Station Area in exchange for providing community benefits, as codified in SSFMC Sections 20.280.005. Although affordable housing is not an enumerated community benefit, Council may consider any proposed benefit for additional density. He provided an overview of recent regional policy discussions about affordable housing by regional policy makers, including the ongoing 21 Elements mentioned above. In recent months, however, the most prominent public discussion has been by an ad hoc committee facilitated by the Metropolitan Transportation Commission (MTC) - which has been commonly referred to as the "Consortium to House the Bay Area" or "CASA." CASA includes representatives from for-profit and affordable housing developers, property owners, tech businesses, labor, and elected officials including the mayors of San Francisco, Oakland, and San Jose. CASA developed a white paper known as the "CASA Compact", which puts forth 10 proposed policies for addressing the current housing crisis. On December 12, 2018, MTC voted to approve the CASA Compact as an advisory document with further discussion expected in the coming year. PUBLIC COMMENTS — comments are limited to items on the Special Meeting Agenda. Mayor Matsumoto invited public comment after the introduction of Administrative Business Item #1 and the following speakers addressed the Council: Lee Ginsburg commended Council for addressing housing and adding more housing in the City. He expressed his concern about relocation payments for tenants at the conclusion of a lease contract. He stated that as a landlord he is in favor of a one year lease and then a month to month basis. Susan Lewis stated she is a local bookkeeper and requested that Council consider their actions and requested that they consider the potential impact to local property owners that are currently facing housing challenges. She expressed her concern about government regulations on tenant eviction and possible rental control. Ms. Lewis stated that rentals in South San Francisco have decreased by SPECIAL CITY COUNCIL MEETING JANUARY 9, 2019 MINUTES PAGE 2 14%. With additional regulations local owners may potentially lose their lifesavings and their livelihood. Rhovy Lyn Antonio, Vice President of Public Affairs for the California Apartment Association (CAA) representing rental property owners and operators. She requested that Council consider using CAA as a resource to develop reasonable policies that protect the renters and property owners. Mike Haddock stated his concern with offering additional protections to renters which at this time do not exist for housing providers. He stated that the majority of tenants evicted in San Mateo County have been evicted for non-payment. He requested that Council consider their actions moving forward. Jeremy Rushton stated his opposition for rent control and the possible impact to property owners. He explained that his property is a private asset and feels that the government should not control it. He encouraged Council to look for alternate solutions and consider the impact. He indicated his concern with the negative stereotype of landlords and stated that unit properties that are subject to rent control is one of the reason why rents are high. Gina Zari of SAMCAR stated that property owners come from various income levels and some property owners do not have the financial means to subsidize rent. She requested that Council consider policies that will not have a deep impact on the local property owners. Mayor Matsumoto stated that she requested discussion of this item because she wanted to insure that renters were protected from abrupt evictions and assistance with relocation costs due to inhabitable homes. She stated that the discussion would not involve rent control. Councilmember Addiego stated that South San Francisco is a unique City with many local property owners keeping affordable rent prices for their tenants. He indicated that there have been many residents of South San Francisco that have been displaced due to property owners selling to large developers, without offering their tenants protection i.e., Antoinette Lane apartments suddenly displaced a large amount of families. In addition, there have been property owners that have increased rent cost without proper notification and often with only 30 day notice. He stated his opposition to rent control. Vice Mayor Garbarino inquired about current protections and/or policies for renters throughout San Mateo County. He expressed his desire to find a solution to protect property owners and tenants in a fair manner. Councilmember Nicolas stated her opposition to rent control and expressed her desire to protect property owners and tenants in a manner that favors both. Councilmember Nagales stated his support in finding a solution for both property owners and renters. He indicated his opposition to have the City dictate the cost of rent and the need to consider the possible implications to local property owners. He is in favor of one year lease agreements SPECIAL CITY COUNCIL MEETING JANUARY 9, 2019 MINUTES PAGE 3 allowing for the month to month option. Council provided City Manager Futrell with direction to have staff research the following items: 1. Relocation assistance in limited circumstances i.e., inhabitable properties and site development 2. Minimum one year lease agreement 3. Rent increase with a possible 90-120 days The item will be brought back to Council for additional discussion in the near future. CLOSED SESSION 2. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Properties: 374 Cypress Avenue (Parking Lot #13) City Negotiators: Mike Futrell and Alex Greenwood Negotiating Parties: City of South San Francisco and John R. Penna Under Negotiation: Review of Price and Terms Time entered Closed Session: 6:47 p.m. Meeting resumed: 7:01 p.m. Report out of Closed Session by Mayor Matsumoto: Direction given. No reportable action. ADJOURNMENT Being no further business, Mayor Matsumoto adjourned the meeting at 7:01 p.m. Respectfully submitted by: VL4'leo Azv� - Rosa Govea Acosta, CMC, CPMC City Clerk SPECIAL CITY COUNCIL MEETING MINUTES Approved by: iviaym JANUARY 9, 2019 PAGE