ITEM 6-R

Council Meeting: May 14,1991            Santa Monica, California

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Annual Report on Compliance with California Revenue
          and Taxation Code Section 17274 Regarding Rental
          Housing Code Enforcement for Calendar Year 1990

INTRODUCTION

The purpose of this report is to present the Building and  Safety
Division's rental housing code enforcement activities as required
by  California  Revenue  and  Taxation  Code  Section  17274  and
recommend that City Council accept and file this required report.

BACKGROUND

Section 17274 of the California Revenue and Tax Code  outlines  a
procedure under which regulatory agencies report to the Franchise
Tax Board the names and  addresses  of  (City  of  Santa  Monica)
owners  of  substandard rental housing who fail to make necessary
repairs to bring the property into compliance with health, safety
and  building  codes  within  a  specified  period  of time.  The
Franchise Tax Board is required to deny income tax deductions  to
owners of these properties until the regulatory agency determines
that the substandard housing has been brought to a  condition  of
compliance.   The statute also requires that a report be filed by
each regulatory agency with its local legislature by  July  1  of
each  year,  advising  of  the  status  of enforcement activities
initiated under this program  during  the  prior  calendar  year.
This  is  the eighth annual report filed regarding Santa Monica's
housing code enforcement activities.

ANALYSIS

The Building and Safety Division staff has  reviewed  the  City's
records   of  rental  housing  code  complaints  and  enforcement
activities during 1990.   A  summary  of  Santa  Monica's  rental
housing  enforcement  activities  is presented (attached Table 1)
for  the  period  1979-1990.   A  total  of  1497  complaints  or
referrals  regarding  housing  code  violations were received and
processed   by   City  staff  during  this  twelve  year  period.
Subsequent inspections resulted in a total of 68 properties being
cited as  having substandard units.  All but three of the notices
issued  through calendar year 1990 have been resolved without the
need to invoke the provisions  of  Section  17274.   These  three
cases   were  also  referred  to  the  City Attorney's Office for
processing and have  been  resolved.   The  two  cases  shown  as
"unresolved"  for  year  1990  also  have  been  referred to City
Attorney's office for  resolution and  further  processing  under
the  state  statute  is  not  expected  to be necessary.  Table 2
attached presents the 1990 information on  Sec  17274  compliance
activities  for  Santa  Monica in the specific format required by
state statute.

BUDGET/FINANCIAL IMPACT

There is no financial  impact  related  to  the  filing  of  this
report.

RECOMMENDATION

It is the staff's recommendation that the  City  Council  receive
and file this report as the calendar year 1990 report required by
Revenue and Taxation Code Section 17274 for Santa Monica.

Prepared by:  W.D. Rome, Building Officer
              LUTM Dept.-Bldg & Sfty Div.

Attachments:  Table 1- Summary of Rental Housing Code
                       Enforcement Activities, 1979-1990

              Table 2- Santa Monica 1990 Information Pursuant
                       Revenue & Taxation Code Section 17274