City Council Meeting 6-22-04 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Ordinance
Amending Chapter 4.36 of the Santa Monica Municipal Code to Extend Relocation
Benefits To All Residents Displaced by Ellis Act Evictions
INTRODUCTION
In April 2004,
in response to a recent change in State law, Council directed staff to prepare
an ordinance extending relocation benefits to all residents displaced by Ellis
Act evictions, irrespective of household income. The attached ordinance fulfills that direction. Staff recommends that the Council introduce
the ordinance for first reading and also adopt a resolution adjusting for
inflation the amount of permanent relocation fees paid to tenants.
BACKGROUND
The City’s
Relocation Assistance Ordinance (Chapter 4.36 of the Municipal Code) originally
required relocation assistance for all tenants whose units were withdrawn from
the rental market under Government Code Sections 7060 et seq. (the “Ellis
Act”). In Channing v. City of Berkeley (1992) 11 Cal App.4th 88,
the California Court of Appeal interpreted Government Code Section 7060.1(c) to
restrict local authority on Ellis relocation benefits to lower income
households. In response to the Channing decision, Council amended the Relocation Assistance Ordinance to
limit Ellis relocation benefits to lower income households.
Effective January 2004, the California Legislature amended Government Code Section 7060.1(c) to broaden local authority on Ellis relocation benefits to all tenants regardless of income. This amendment renders moot the Court of Appeal’s holding in Channing.
The Relocation
Assistance Ordinance provides for periodic adjustments in the fees pursuant to
the CPI-W rent index. The index has
increased substantially in the area, but relocation benefits have not been
adjusted since November of 1999.
DISCUSSION
Pursuant to changes in state law, the City may now reinstate relocation benefits for all tenants displaced by Ellis evictions. The attached, proposed ordinance would accomplish that purpose and provide benefits to all Ellised tenants who are forced to confront the realities of the area’s rental housing market.
The proposed ordinance would have the additional benefit
of conserving staff time and resources.
In recent years, the Consumer Unit of the City Attorney’s Office has
handled many Ellis relocation complaints that involved disputes over the
tenants’ income. Such disputes are
often legally complex and fact-intensive. Removing the low-income requirement would eliminate the issue of
tenants’ income and thereby allow staff to spend more time on other housing and
consumer issues.
The attached
resolution would adjust and update relocation fees according to the formula set
forth in Santa Monica Municipal Code Section 4.36.040.
FINANCIAL/BUDGET IMPACT
The proposed
ordinance would have no direct financial impacts on the City.
RECOMMENDATION
Staff recommends that Council introduce the attached ordinance for first reading and adopt the attached resolution.
PREPARED BY: Marsha Jones Moutrie, City Attorney
Adam Radinsky, Deputy City Attorney
Bob Moncrief, Housing and Redevelopment Manager
Jim Kemper, Senior Administrative Analyst, Housing and Redevelopment Division
ATTACHMENT: Ordinance