The Menlo Park City Council on Tuesday offered a mixed response to a potential tenant-relocation policy that includes a form of rent control and directed staff to return with two alternative versions of the proposal.

The council took these steps during a study session on the potential ordinance that included nearly two hours of public testimony coming mainly from of concerned rental housing owners, many wearing yellow badges that said “Responsible Housing Providers.”

Under the Housing Commission’s proposal, relocation fees would be triggered when rent increases over 5 percent plus CPI prompt qualifying renters to move. The resulting penalty would reach as high as four months’ rent.

The fees also could be triggered after a “landlord-caused termination,” a policy that resembles “just cause” eviction restrictions.

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