This week, the San Jose City Council held a study session to better understand the issue of tenant displacement from a residential and business perspective. The Housing Department scheduled the study session to educate the council on who is getting displaced, why they are being displaced and what can be done to prevent that displacement. Much of the discussion focused on what the city could do to further support tenants from being evicted. While there is no disagreement that displacement is occurring because of rising rents, there was disagreement on what can be done to lessen it.
The city of Sacramento announced the initial rent cap under the Tenant Protection and Relief Act, a new ordinance that limits rent increases and provides “just cause” tenancy protections. Effective Sept. 12, 2019, the maximum annual rent adjustment for an existing tenancy cannot exceed 8.5% within a 12-month period. The new ordinance limits rent increases to 6% plus the annual Consumer Price Index. According to city staff, the CPI used to calculate the rent cap was 2.5%. The allowed annual increase is calculated based upon the base rent, which is the monthly rent in effect on July 1, 2019, for tenancies commencing on or before Sept.12. For tenancies beginning after that date, the initial base rent is the monthly… Read More
When Sacramento renters get caught illegally cultivating marijuana, it’s their landlords who get the bill — and it can reach hundreds of thousands of dollars. Over the past two years, the city has assessed $94 million in administrative penalties against property owners accused of violating the local cannabis ordinance, CapRadio has reported. The ordinance, which took effect in August 2017, limits the number of plants that may be cultivated at a property to six and charges $500 per plant in excess of that number. And now, other California cities may be looking at Sacramento’s enforcement tactics as a possible model for their own marijuana-cultivation measures. Sacramento City Hall Enforcement of… Read More
The California Apartment Association has issued an “Industry Insight” paper to help rental housing owners comply with a Section 8-related ordinance that’s taken effect in San Jose. Effective Thursday, Sept. 26, the city’s “Housing Payment Equality Ordinance” requires that landlords consider for tenancy all applicants with the ability to pay for a given unit, including those who would pay their rent using Section 8. The enforcement provisions of the ordinance do not take effect for six months, but the director of the San Jose Department of Housing may issue written warnings for violations of the ordinance in the meantime. CAA… Read More
The Santa Rosa City Council decided to pursue a mandatory Section 8 ordinance Tuesday, but not before pledging to work with CAA to make the program more workable for local landlords. The council advanced the ordinance on a 5-1 vote and is expected to formally approve the law after a second reading next month. The measure will prohibit blanket policies against accepting Section 8 applicants, ban “No Section 8” ads, and make it illegal to deny a tenancy based solely on the tenant’s possession of a voucher.
Landlords with properties subject to Sacramento’s new rent control law will help fund the program through a $20-per-unit annual fee. The fee won approval Tuesday as the City Council ratified the budget for its new rent control and “just cause” eviction ordinance. More than 42,000 rental units are subject to the ordinance and the annual fee. The city will begin collecting it in spring 2020.
Christopher Thornberg The California Apartment Association is pleased to announce that renowned economist Christopher Thornberg, founding partner of Beacon Economics, will deliver the economic forecast at Outlook 2020 — an economic and political lookahead for Orange County’s rental housing industry. The forecast is part of CAA’s annual Orange County Holiday Breakfast meeting, which comes to Costa Mesa on Dec. 5. In addition to an analysis of the state and local economy, Thornberg will provide a snapshot of employment, home prices, consumer spending, personal income, and other leading economic indicators impacting the Orange County market. Aside from his role at Beacon… Read More
During a special meeting Tuesday, the Milpitas City Council decided to pursue an emergency “just cause” for eviction ordinance. The council directed staff to draft the ordinance for council consideration when it meets Oct. 15. Because it’s an emergency ordinance, it would need 4 out of 5 votes to pass. If it does, it would take effect immediately and remain in place until the beginning of next year, when statewide “just cause” policies are expected to take effect under Assembly Bill 1482. The council directed staff to draft the emergency ordinance to mirror exactly the just-cause section of AB 1482.