Loading...
HomeMy WebLinkAboutMinutes 2019-11-25 @6:01MINUTES CITY COUNCIL 0 CITY OF SOUTH SAN FRANCISCO y SPECIAL MEETING i1Foa�1A MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA MONDAY, NOVEMBER 25, 2019 6:01 P.M. CALL TO ORDER Time: 6:05 p.m. ROLL CALL Present: Councilmembers Addiego, Nagales, Nicolas, Vice Mayor Garbarino, and Mayor Matsumoto. AGENDA REVIEW None. PUBLIC HEARING Report regarding Urgency Ordinance No. 1590-2019 immediately implementing provisions of California State Assembly Bill 1482, the Tenant Protection Act of 2019. (Nell Selander, Deputy Director Economic & Community Development Department) Public Hearing Opened: 6:06 p.m. Deputy Director of Economic & Community Development Selander presented the report and indicated that on October 8, 2019, California State Assembly Bill 1482 (AB 1482) was signed into law by Governor Newsom. She provided an overview of AB 1482 two primary components: (1) a cap on rent increases and (2) just cause eviction protections. Under AB 1482, beginning January 1, 2020, property owners must limit rent increases on rental housing units to 5% plus inflation (but not more than 10%). If a property owner raises rent more than 5% plus inflation between March 15, 2019 and January 1, 2020, on January 1St the rent must be lowered to the rent as of March 15th plus 5% and inflation. AB 1482 does not require property owners to refund any rent paid by tenants. So in essence, a tenant can pay a higher rate than allowed under AB 1482 for up to nine months, but then is afforded a lower rent under AB 1482 beginning January 1St Beginning January 1, 2020, property owners must give "just cause" when terminating leases of tenants who have resided in the unit for at least twelve months. AB 1482 identified two types of just cause, "at -fault" and "no-fault". An at -fault eviction can be cited when a tenant has violated the terms of their lease, such as non-payment of rent or illegal activity. No-fault evictions require the property owner pay the tenant one month's rent as relocation assistance. Currently, there are no limits on rent increases in South San Francisco. Under existing State law, rent increase of less than 10% require a 30 -day notice to the tenant, and rent increases of more than 10% require 60 -days' notice. Additionally, evictions require a 30 -day notice for tenants of less than one year and 60 -days' notice for longer-term tenants. Eviction notices must inform the tenant that the tenancy will expire at the end of the notice period and the tenant must move out of the rental unit by that time. The only way a property owner can legally evict a tenant in California is through the court system and winning an unlawful detainer suit. After winning the lawsuit, the property owner must use a sheriff to perform the eviction. In California, it is illegal for the landlord to personally remove the tenant from the rental unit. Staff mapped the types of units the legislation applies to in South San Francisco and found that AB 1482 will apply to roughly 40% of rental units in South San Francisco, or approximately 4,800 households. The gap in time between the final approval of AB 1482 and its effective date has created risk of increased evictions of tenants protected once the new law goes into effect. Immediately implementing the just cause provisions of AB 1482 by adopting an urgency ordinance will only apply to those households already anticipated to be protected by the legislation, or roughly half of South San Francisco renters. To adopt an urgency ordinance, the City Council must declare there is a current and immediate threat to the public peace, health, and safety. The urgency ordinance includes those findings and would have to be adopted by a 4/5 vote of the City Council. Since October, the Community & Economic Development Department received four phone calls and 11 walk-ins regarding rent increases and evictions. Staff have also received several calls and walk-ins from property owners asking about the impacts of AB 1482 on their ability to evict tenants and increase rents. Legal Aid Society provided staff with data on evictions that they were aware of from October 8 (when AB 1482 was signed into law) to November 15 (when staff contacted Legal Aid). During this time, Legal Aid reports that it has seen six South San Francisco tenants with 60 -day termination notices without cause who would be eligible for protection under AB 1482. This number excludes households in exempt units or tenancies, such as tenancies under 12 months and single-family homes. Typically, Legal Aid sees about 1.5 cases of no-fault evictions per month in South San Francisco. Six "no cause" termination notices in little over a month far exceeds the normal rate observed by Legal Aid. Community Legal Services of East Palo Alto reports that, since August 2019, it has seen two no -cause evictions of City tenants. Due to the increased number of expressed concerns and uptick in no-fault evictions, and the potential unintended consequence of property owners acting to remove tenants before the new protections under AB 1482 are effective, staff drafted an urgency ordinance implementing the just cause provisions of the legislation. This would protect tenants who qualify under AB 1482 and have not yet received a termination notice. The urgency ordinance would also offer protection to tenants who have received a termination notice but are not yet the subject of an unlawful detainer action. For these tenants, the ordinance would create an affirmative defense to eviction in the unlawful detainer proceeding, if the landlord did not comply with the AB 1482 just -cause provisions. If adopted the urgency ordinance would be in effect immediately and expire when AB 1482 goes into effect on January 1, 2020. SPECIAL CITY COUNCIL MEETING NOVEMBER 25, 2019 MINUTES PAGE 2 PUBLIC COMMENTS Alex Melendrez, San Mateo County Housing Leadership Council, addressed Council to express his support of the proposed ordinance. He thanked staff and Council for their efforts to help families remain in their homes. John Penna, SAMCAR, addressed the Council to express his disapproval and shared the state law that allows a 9% rental increase. He cautioned Council on the unintended consequences of approving such an ordinance. Isabel Perez addressed the Council to express her support of the ordinance and indicated that she represented families that are facing eviction notices near the holiday season. She thanked Council for their commitment to the families in South San Francisco. Ms. Perez shared with Council that she was facing eviction of her property along with other neighbors. Carolina Parrales, coordinator with Faith in Action Bay Area, addressed the Council and shared the number of calls they have received of families facing 30 or 60 -day eviction notices. She indicated that rental prices have increased significantly in San Mateo County and urged Council to take the necessary steps to protect its residents. She expressed her support of the proposed ordinance. John Prouty addressed the Council to express his disappointment and opposition of the proposed ordinance. He indicated that AB 1482 mandates landlords to increase rent prices and shared his experience as a longtime landlord of the City with affordable rent prices. Rosemary Murphy addressed the Council to express her concern with neighbor's receiving eviction notices during the holidays and the lack of protection available to them. She urged Council to pass the ordinance to protect tenants. She provided Council with a copy of a letter issued to Kenny Realty on behalf of Jure Orlic. Dr. Luciana Profaca, former Chief Deputy Director of Department of Rehabilitation, address Council to share her experience with the lack of housing for individuals with disabilities. She urged Council to approve the ordinance. Sushil Dutt, community resident, addressed Council to express her concern with the resident increase of tenant evictions and urged Council to adopt the ordinance and protect residents. Suzanne Moore addressed Council to share her experience working with patients that faced evictions and housing struggles, she shared her efforts in advocating for tenant protection, preservation of affordable housing and safe housing for all. She urged Council to approve the ordinance. Maria Esperanza addressed Council and shared her story of eviction and the stress it has caused her and her family. She urged Council to approve the ordinance and help families like hers in need. Lee Ginsburg addressed Council and requested clarification of the proposed emergency ordinance. He urged the Council to consider the unintended consequences of the ordinance. City Attorney Woodruff indicated that the ordinance would implement same protections as AB 1482 on an immediate basis versus January 1, 2020. The ordinance covers no-fault evictions; however, failure to pay rent is a reason under state law to allow eviction. Councilmember Addiego inquired when the ordinance would become effective if approved. The ordinance would be in effective immediately. SPECIAL CITY COUNCIL MEETING NOVEMBER 25, 2019 MINUTES PAGE 3 City Attorney Woodruff provided an overview of the proposed ordinance and the process of unlawful detainers. He explained that if approved, the ordinance establishes a just cause, no specific retroactivity date. Councilmember Nagales indicated that the tenant must respond within 5 days to an unlawful detainer. The tenant must have followed the procedures in order to seek protection under the emergency ordinance. In the event the tenant did not answer within 5 days, the tenant must request that a judge grant relief. Alane Gilbrech, San Mateo County Association of Realtors (SAMCAR), urged Council to consider property owner rights. There are a lot of property managers and owners seeking assistance from Council. A letter from property manager, Mike Kenny was read into the record in response to a tenant request of support. Veronica Lopez, a longtime resident, addressed the Council to express her support and shared her families experience and challenges finding affordable housing. She urged Council to approve the ordinance. John Brook addressed the Council to express his disappointment with AB 1482 and its impact to housing providers. He encouraged Council to remove the retroactive clause included in the emergency ordinance. Yeritzia Noboa, a resident, addressed the Council to share her experience with housing costs and her eviction process. She urged Council to pass the ordinance and help families in need. Suzan Getchell -Wallace, SAMCAR Board of Directors, advised Council that SAMCAR met and approved a resolution to form a task force to deal with the unintended consequences of AB 1482. She provided an overview of SAMCAR's efforts in serving as a resource to tenants in need. Gina Zari, SAMCAR, addressed Council to express her concerns with the proposed ordinance and the unintended consequences. She indicated that AB 1482 would affect local property owner's rights. She urged Council not to approve the ordinance. Rhovy Lyn Antonio, Tri -County Director - CA Apartment Association, addressed Council to express her concern with the urgency ordinance and requested that staff do their due diligence to serve residents of the community. She shared with Council and the community the numerous programs available for emergency funding. She urged Council not to approve the ordinance. Rafel Cons, property owner and proprietor, addressed Council to express his concern and disapproval. He encouraged Council to explore other options and resources to protect tenants and proprietors. Daniel Lee addressed Council to express his concerns with the proposed ordinance and urged Council not to pass the ordinance. Public Hearing Closed: 7:21 p.m. Councilmember Addiego requested an overview of California's Wildfire Ordinance. City Attorney Woodruff stated that Governor Newsom declared a statewide emergency and signed the ordinance on October 27, 2019. The ordinance was valid for 30 days, there have been no updates or extensions declared. He provided an overview of the housing protection during an emergency declaration. SPECIAL CITY COUNCIL MEETING NOVEMBER 25, 2019 MINUTES PAGE 4 Councilmember Addiego congratulated Mr. John Penna and Mr. John Prouty for their integrity and the manner in which they care for their tenants. He expressed his disappointment with Kenny Realty and their eviction process. Vice Mayor Garbarino expressed his opposition to AB 1482 and shared his efforts in expressing his concerns to state legislators. He expressed his disapproval of enacting an emergency ordinance due to the unintended consequences to both tenants and property owners. Councilmember Nagales requested clarification on the definition of significant remodeling and future enforcement. City Attorney Woodruff stated that the ordinance effectively provides an additional defense, no enforcement on the City's part; the urgency ordinance could be used as a defense against evictions, if approved by Council. Deputy Director of Economic and Community Development Selander and provided clarification of significant remodeling, the replacement or substantial modification to a unit, requiring a permit from government agency or the abatement of hazardous materials applicable to local, state and federal laws. Improvements can't be done with residents in place; cosmetic improvements alone do not qualify. Councilmember Nagales indicated that some cities do not have retroactive clauses and inquired about the impacts of removing clauses to the proposed ordinance. City Attorney Woodruff stated that the ordinance could be amended to remove the retroactive clause; he provided an overview of the possible impacts to tenant protection. Councilmember Nicolas expressed her concern with AB 1482, she expressed her support for both the tenants and landlords and indicated that it is very difficult to make a decision and exclude sections of the ordinance that may impact lives. Mayor Matsumoto expressed her concern with AB 1482 and indicated her support for both tenants and landlords. She stated that the associations that spoke don't represent all property owners and applauded their outreach efforts to encourage good landlords. Councilmember Addiego expressed his sympathy for the families currently facing evictions and shared the Council's efforts towards affordable housing. Council engaged in discussions of emergency ordinance verbiage and possible modifications. Vice Mayor Garbarino inquired about removing express statement verbiage. City Attorney Woodruff reviewed the San Mateo County ordinance and provided clarification to Council. Meeting Recessed: 8:00 p.m. Meeting Resumed: 8:13 p.m. Motion — Councilmember Nagales/Second —Vice Mayor Garbarino: To adopt Urgency Ordinance No. 1590-2019 immediately implementing provisions of California State Assembly Bill 1482, the Tenant Protection Act of 2019, as amended by City Attorney, deleting Section 5, paragraph 2 "prior to, as of, or". Unanimously approved by roll call vote. ADJOURNMENT Being no further business Mayor Matsumoto adjourned the meeting at 8:46 p.m. SPECIAL CITY COUNCIL MEETING NOVEMBER 25, 2019 MINUTES PAGE 5 Respectfully submitted by: 6AJ-�� ' Rosa G . ,ea Acosta, CMC, CPMC City Clerk Approved: 0.2-112-1.2 6:10 SPECIAL CITY COUNCIL MEETING MINUTES Approved: V hcf ' � �.Mayor NOVEMBER 25, 2019 PAGE 6