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HomeMy WebLinkAboutItem 12a - No-Fault Evictions DATE: December 17, 2019 TO: Honorable Mayor and City Council FROM: Stephen P. Deitsch, City Attorney SUBJECT: URGENCY ORDINANCE NO. 2371 ADDING CHAPTER 9 TO ARTICLE VI OF THE ARCADIA MUNICIPAL CODE, TO TEMPORARILY PROHIBIT NO-FAULT EVICTIONS THROUGH DECEMBER 31, 2019, FOR RESIDENTIAL REAL PROPERTY BUILT PRIOR TO JANUARY 1, 2005 Recommendation: Adopt SUMMARY The proposed Urgency Ordinance would amend the Arcadia Municipal Code in order to protect renters of residential property within the City from the immediate threat of being evicted on a no-fault basis. This Ordinance is to provide extra protections to renters from no-fault evictions through December 31, 2019, in advance of AB 1482’s effective date. It is recommended that the City Council adopt Urgency Ordinance No. 2371. BACKGROUND The California legislature passed the Tenant Protection Act of 2019, Assembly Bill 1482 ("AB 1482"), effective January 1, 2020, which prohibits evictions without "just cause" and prevents owners of residential rental property from increasing rents each year more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, in any 12-month period. This Bill would provide that these provisions apply to all rent between March 15, 2019, and January 1, 2020. Therefore, although AB 1482 goes into effect on January 1, 2020, it would be applicable to all rent increases occurring on or after March 15, 2019. AB 1482 will provide renter protections to many households in the City of Arcadia but in advance of the implementation of AB 1482, no-fault eviction notices and threats of eviction have emerged within the City. As such, because of this recent surge, the City of Arcadia might wish to protect renters from no-fault evictions through December 31, 2019, in an effort to prevent further homelessness and displacement. Adoption of Urgency Ordinance No. 2371 - No-Fault Evictions December 17, 2019 Page 2 of 3 Several cities have adopted this type of urgency ordinance. At the same time, several cities have not adopted an urgency ordinance as the state law will take effect in a short time. (AB 1482 will take effect on January 1, 2020.) If the City Council would like to provide these protections immediately before AB 1482 takes effect, then the City Council should pass the attached Urgency Ordinance. DISCUSSION While the issue does not seem to be highly prevalent within the City of Arcadia, several residents have informed the City Council that they have received eviction notices in advance of AB 1482 taking effect. In order to attempt to protect the sheltering status of those renters, it is recommended that the Council consider adopting an urgency ordinance by adding Chapter 9 to the Arcadia Municipal Code in order to improve the City’s ability to stabilize the residential rental market and increase protections for renters from no-fault evictions. The proposed amendment should be adopted on an urgency basis, taking effect immediately, to mitigate the immediate threat to the public health, safety, and welfare posed by escalating residential tenant evictions by landlords. This Ordinance would also establish an argument, in defense against eviction, by any tenant who received an eviction notice before the adoption of the proposed Urgency Ordinance, in which the owner and/or landlord of the rental unit has not yet gone to court. This area of law is unsettled and it will be up to the court hearing the unlawful detainer proceeding to decide the merits of the tenant’s case in applying the proposed Ordinance and affording its protections under Chapter 9, Section 6902 of the Municipal Code. The proposed ordinance is included as Attachment 1. ENVIRONMENTAL ANALYSIS The proposed Code amendment is not a “project” for purposes of the California Environmental Quality Act (CEQA), as that term is defined by CEQA guidelines (Guidelines) sections 15061(b)(3), and 15378(b)(5). The effect of the proposed amendment will be to maintain the status quo. No new development will result from the proposed action. No impact to the physical environment will result. The amendment is an administrative activity by the City of Arcadia, in furtherance of its police power, and will not result in any direct or indirect physical change in the environment, per sections 15061(b)(3), and 15378(b)(5) of the Guidelines. Adoption of Urgency Ordinance No. 2371 - No-Fault Evictions December 17, 2019 Page 3 of 3 FISCAL IMPACT There are not expected to be any significant costs to the City associated with the adoption of this ordinance. However, a legal challenge to the proposed ordinance may be costly should the City choose to defend its actions at that time. RECOMMENDATION It is recommended that the City Council determines that this Ordinance is exempt under the California Environmental Quality Act (“CEQA”); and adopts Urgency Ordinance No. 2371 adding Chapter 9 to Article VI of the Arcadia Municipal Code to temporarily prohibit no-fault evictions through December 31, 2019, for residential real property built prior to January 1, 2005. Attachment: Urgency Ordinance No. 2371