Chapter 3 — RENT STABILIZATION

Section

11-3.01 Title; reference to chapter

11-3.02 Application

11-3.03 Definitions

11-3.04 Limit on rental rate increases

11-3.05 Reasonable rate of return

11-3.06 Tenant petition for rent reduction

11-3.07 Landlord petition for rent increase

11-3.08 Exemptions

11-3.09 Rent increase ineffective; no waiver

11-3.10 Notice requirements

11-3.11 Violations; remedies

11-3.12 Rent program fee and registration requirement

11-3.13 Implementation

This Chapter 3 shall be known as the "Rent Stabilization Ordinance".

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

The provisions of this Rent Stabilization Ordinance are applicable to any building or part of a building that is used for residence and that is rented to a tenant as a dwelling place, except those units exempted by § 11-3.08 ("Rental Unit"). This Rent Stabilization Ordinance shall be interpreted and administered in a manner consistent with the Costa- Hawkins Rental Housing Act codified in Cal. Civil Code §§ 1954.50, et seq. ("Costa-Hawkins"), if any conflict exists between the provisions of Costa-Hawkins and this chapter, Costa-Hawkins shall prevail.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

(A) For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

HOUSING SERVICES. All amenities and services related to the use or occupancy of a rental unit and common areas that are provided by the landlord.HOUSING SERVICES includes without limitation hot and cold water, heat, utilities, painting, elevator service, refuse removal, janitorial service, maintenance, repairs, replacement, recreational areas (including pools or gyms), laundry facilities, furnishings, storage space, parking (including one or more automobiles), employee services, security services, insurance, the payment of property taxes, and any other benefits or privileges permitted to the tenant by agreement, whether express or implied, including the right to have a specific number of occupants and the right to one-for-one replacement of roommates, regardless of any prohibition against subletting and/or assignment. HOUSING SERVICES also includes those basic housing services required by Cal. Civil Code § 1941.1.HOUSING SERVICES includes a proportionate part of services provided to common facilities of the building and property in which the rental unit is contained.

LANDLORD. An owner of record, lessor, sublessor or any other person, entity, or nonnatural person entitled to receive rent for the use or occupancy of any dwelling place subject to this Rent Stabilization chapter, or an agent representative, affiliate, member, shareholder, trustee, or successor of any of the foregoing. If an owner of a rental unit is other than a single natural person, then all entities and persons that share ownership and/or control (direct or indirect) of the units under this Rent Stabilization chapter shall be considered one and the same landlord.

RENT. The sum of all consideration demanded accepted, or retained for the use or occupancy of a rental unit or for housing services provided, or both.RENT includes all periodic payments and all nonmonetary consideration, including, but not limited to, the fair market value of goods or services rendered to or for the benefit of the landlord, under an agreement concerning the use or occupancy of residential real property.

(B) Terms defined in other sections of this Rent Stabilization chapter shall have such meaning when used in this Rent Stabilization chapter, whether singular or plural.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

(A) Increases in rent on residential real property in the city may not exceed the lesser of 3% or 60% of the most recent 12-month increase in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-Hayward Area published by the Bureau of Labor Statistics. Only one rent increase in any 12 month period is permitted. A reduction in housing services is an increase in rent.

(B) Division (A) of this section shall apply to all rent increases occurring on or after August 23, 2022.

(1) In the event that a landlord has increased the rent by more than the amount permissible under division (A) between August 23, 2022 and the effective date of this Rent Stabilization chapter, the

applicable rent on the effective date of this Rent Stabilization chapter shall be the rent as it existed on August 23, 2022 plus the maximum permissible increase authorized under division (A) of this section and applicable state law, if any.

(2) A landlord has no duty to refund otherwise lawful rent received prior to the effective date of this Rent Stabilization chapter in excess of the amount authorized by this section.

(C) The 12 month period referenced in division (A) of this section shall begin on the date of the last rent increase regardless of whether the last increase occurred prior to the effective date of the Rent Stabilization chapter.

(D) The City Council finds that the limited retroactive effect enacted by divisions (B) and (C) of this section are necessary to counteract any rent increases imposed in anticipation of the adoption of rent stabilization in the city and to more fully effectuate the legislative and public purposes of this Rent Stabilization chapter.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

This Rent Stabilization chapter allows for an annual adjustment of residential real property rent of up to the lesser of 3% or 60% of the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-Hayward Area published by the Bureau of Labor Statistics pursuant to § 11-3.04. Such an increase is found and determined to provide a just and reasonable return on a landlord's property, and has been adopted to encourage good management, reward efficiency, and discourage the flight of capital, as well as to be commensurate with returns on comparable investments, but not so high as to defeat the purpose of curtailing excessive rents and rental increases. Notwithstanding the foregoing, any landlord who contends that the limit on rental increases set forth in § 11-3.04 will prevent the landlord from receiving a fair and reasonable return on the property may petition for relief from the limit set forth in § 11-3.04 pursuant to the procedures set forth in §11-3.07.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

(A) A tenant may petition for a reduction of rent ("rent reduction petition") if the tenant believes that the landlord has demanded, accepted, or retained fromthe tenant any rent in excess of the rent permitted by this Rent Stabilization chapter. The landlord shall be informed of the tenant's complaint and shall have the opportunity to respond to the tenant's claim of rent overcharge.

(1) Such rent reduction petition shall be on an application form prescribed by the City Attorney or designee and shall be decided by a Hearing Officer subject to §1-6.01 designated by the City

Attorney.

(2) The tenant shall provide a copy of any rent reduction petition submitted to the city to the applicable landlord and shall provide the city with proof of completing such service to the applicable

landlord. The landlord shall have 30 days from the date of receiving the rent reduction petition to reply or provide additional materials to the city in response to the rent reduction petition.

(3) The tenant shall bear the burden of establishing that a rent reduction is necessary to comply with the city's Rent Stabilization Ordinance by providing information including the type of dwelling,

dates of tenancy, dates of rent increases, amount of rent increases, dates of charges, and amounts of charges.

(B) The factors the Hearing Officer may consider in deciding a rent reduction petition shall be matters related to the landlord's failure to comply with the city's Rent Stabilization Ordinance and regulations. For example, the amount of rent that the landlord has actually demanded, accepted, or retained from the tenant exceeds the amount of rent that the landlord could lawfully charge. The Hearing Officer may also consider a landlord's decrease of housing services.

(C) A rent reduction petition shall be decided by the Hearing Officer within 60 calendar days of the date that the application has been deemed complete, including submission of proof of service of the rent reduction petition on the applicable landlord(s), unless an extension of this time has been agreed upon by the parties. The decision shall be sent by mail and shall be emailed with proof of mailing to the applicable tenant(s), the designated representative of the tenant(s), the subject landlord, and the landlord's designated representative(s) for the rent reduction petition, if any. The decision of the Hearing Officer shall be the final decision.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

(A) A landlord may petition for a rent increase in excess of that provided in §11-3.04 in order to obtain a fair and reasonable return on the landlord's property ("fair return petition").

(1) Such fair return petition shall be on an application form prescribed by the City Attorney or designee and shall be decided by a Hearing Officer subject to §1-6.01 designated by the City Attorney.

(2) The landlord shall provide a copy of any fair return petition submitted to the city to the applicable tenant(s) and shall provide the city with proof of completing such service to the applicable

tenant(s). The tenant(s) shall have 30 days from the date of receiving the fair return petition to reply or provide additional materials to the city in response to the fair return petition.

(3) The landlord shall bear the burden of establishing that a rate increase in excess of that provided in §11-3.04 is necessary to provide the landlord with a fair and reasonable return on the

property, including by providing an independent financial report and verified financial data demonstrating that without such an increase, the landlord will not realize a fair and reasonable return on the property.

(4) The landlord shall be responsible for all costs associated with the city's review of the fair return petition. Upon receipt of a fair return petition, the Hearing Officer shall determine the anticipated

costs of review and if the employment of expert(s) will be necessary or appropriate for a proper analysis of the landlord's request. If the Hearing Officer so determines, the Hearing Officer shall also determine the anticipated costs of employing such expert(s). The resulting figure shall be communicated to the landlord, and the fair return petition shall not be processed until the landlord has paid to the city the estimated cost of the complete analysis. The city will provide the landlord with an invoice of all costs incurred after the review of the fair return petition. Any unused portion of the advance payment for analysis shall be refunded to the landlord. If additional funds are required, payment will be required before the landlord receives the determination on the fair return petition from the city.

(B) The factors the Hearing Officer may consider in deciding a fair return petition include, but are not limited to, the following:

(1) Changes in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-Hayward Area published by the Bureau of Labor Statistics arising after commencement of the

tenancy.

(2) The length of time since the last determination by a Hearing Officer on a rent increase application, or the last rent increase if no previous rent increase application has been made, after

commencement of the tenancy.

(3) The completion of any capital improvements to the residential real property specified in the fair return petition, and the cost thereof, including materials, labor, construction interest, permit fees, and other items the Hearing Officer deems appropriate, arising after commencement of the tenancy and averaged on a per-unit basis and amortized over a period of not less than 60 months.

(4) Documented rehabilitation work averaged on a per-unit basis and amortized over a period of not less than 36 months.

(5) Changes in property taxes or other taxes related to the subject residential real property arising after commencement of the tenancy.

(6) Changes in the utility charges for the subject residential real property by the landlord, and the extent, if any, of reimbursement from the tenants arising after commencement of the tenancy.

(7) Changes in reasonable operating and maintenance expenses arising after commencement of the tenancy.

(8) The need for repairs caused by circumstances other than ordinary wear and tear arising after commencement of the tenancy.

(9) The amount and quality of services provided by the landlord to the affected tenant(s) arising after commencement of the tenancy.

(C) A fair return petition shall be decided by the Hearing Officer within 90 calendar days of the date that the application has been deemed complete, including submission of proof of service of the fair return petition on the applicable tenant(s), unless the landlord has failed to pay all applicable costs associated with the city's review of the fair return petition or an extension of this time has been agreed upon by the parties. The decision shall be sent by mail and shall be emailed with proof of mailing to the subject landlord, the landlord's designated representative(s) for the fair return petition, the applicable tenant(s), and the designated representative of the tenant(s), if any. The decision of the Hearing Officer shall be the final decision.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

(A) Pursuant to Costa-Hawkins, the provisions of this Rent Stabilization chapter regulating the amount of rent that a landlord may charge shall not apply to the following:

(1) Any residential real property that has a certificate of occupancy issued after February 1, 1995 (Cal. Civil Code § 1954.52(a)(1));

(2) Any residential real property that is alienable separate from the title to any other dwelling unit or is a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (f) of Cal. Bus.

and Prof. Code § 11004.5.

(3) Any other residential real property for which rent may not be regulated by the city pursuant to Costa-Hawkins.

(B) The provisions of this Rent Stabilization chapter regulating the amount of rent that a landlord may charge shall not apply to the following:

(1) A unit owned, operated, or managed by a governmental unit, agency, or authority, or that is specifically exempted from municipal rent regulation by state or federal law or regulation.

(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.

(3) Mobile homes located in mobile home parks.

(4) A unit in a hotel, motel, inn, tourist home, or rooming and boarding house which is rented primarily to transient guests for a period of 30 consecutive calendar days or less, counting portions of

calendar days as full days; and other transient occupancies as defined in Cal. Civil Code § 1940, subdivision (b).

(5) A unit in an institutional facility, including a hospital, medical care facility, residential care facility, asylum, group home for seniors or the disabled, or transitional housing program that assists

homeless persons as defined in Cal. Civil Code § 1954.12.

(6) A unit that the landlord or the landlord's immediate family occupied as their principal place of residence at the beginning of the tenancy so long as the landlord or the landlord's immediate family

continues in occupancy.

(7) A unit within a dwelling unit, if the dwelling unit is the principal residence of a landlord, and landlord shares the bathroom or kitchen facilities with the tenant.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

(A) No rent increase shall be effective if the landlord:

(1) Fails to substantially comply with all provisions of this Rent Stabilization chapter, as that ordinance may be amended from time to time, and with any other applicable policies, regulations or

resolutions concerning rent, including without limitation the service of the tenant with a legally required notice of a rent increase under state law, the registration of all rental units within the city, and the payment of all rent program fees set forth in the city's Master Fee Schedule; or

(2) Fails to maintain the residential real property in compliance with Cal. Civil Code §§ 1941.1 et seq. and Cal. Health and Safety Code §§ 17920.3 and 17920.10; or

(3) Fails to make repairs ordered by the city or court of competent jurisdiction.

(B) Any waiver or purported waiver by a tenant of rights granted under this article prior to the time when such rights may be exercised shall be void as contrary to public policy.

(C) If a tenant reasonably believes a landlord has increased the tenant's rent in violation of this section, the tenant may submit to the city a petition to determine compliance for consideration by a Hearing Officer designated by the City Attorney. The landlord shall have an opportunity to respond to the petition to determine compliance and to participate in the administrative proceeding. The City Attorney shall promulgate administrative regulations to effectuate this section, in addition to those authorized by § 1-6.01 (Antioch Municipal Code). The decision of the Hearing Officer shall be final and not appealable.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

(A) On or before the date of commencement of a tenancy, the landlord of any residential real property subject to this Rent Stabilization chapter shall deliver to the tenant written notice of the following in a form prescribed by the city:

(1) The tenancy is regulated by this Rent Stabilization chapter, Antioch Municipal Code, Title 11, Chapter 3; and

(2) The tenant has a right to submit a complaint to the city pursuant to §11-3.13 or a rent reduction petition pursuant to § 11-3.06 for rent charged in violation of this Rent Stabilization chapter; and

(3) The landlord has a right to respond to any rent reduction petition filed by the tenant with the city pursuant to §11-3.06.

(4) The tenant has a right to respond to any fair return petition filed by the landlord with the city pursuant to §11-3.07.

(B) At the same time and with any notice to increase rent, the landlord must deliver written notice of the following:

(1) The tenancy is regulated by this Rent Stabilization chapter, Antioch Municipal Code, Title 11, Chapter 3; and

(2) The tenant has a right to submit a complaint to the city pursuant to the procedures established pursuant to §11-3.13 or a rent reduction petition pursuant to § 11-3.06 for rent charged in

violation of this Rent Stabilization chapter; and

(3) The tenant has a right to respond to any fair return petition filed by the landlord with the city pursuant to §11-3.07; and

(4) No rent increase is effective unless and until the requirements of this Rent Stabilization chapter have been met.

(C) When a landlord and tenant have entered into a written lease, the landlord must give notices to the tenant in the language primarily used in the lease. When a landlord and tenant have not entered into a written lease, the landlord must give notices to the tenant in the language that a landlord and tenant used primarily when negotiating the terms of the tenancy.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

(A) It shall be unlawful for any person to violate or fail to comply with any provision of this Rent Stabilization chapter, including charging increased rent in violation of this Rent Stabilization chapter or a determination by a Hearing Officer.

(B) Any person who violates or aids or incites another person to violate the provisions of this Rent Stabilization chapter is liable for each and every such offense for actual damages suffered by an aggrieved party (including damages for mental or emotional distress); or for statutory damages in the sum of three times the amount by which the payment demanded, accepted, or retained exceeds the maximum amount that could be lawfully demanded, accepted, or retained, or for statutory damages in the sum of $1,000, whichever is greater; and whatever other relief the court deems appropriate. In the case of an award of damages for mental or emotional distress, said award may be trebled if the trier of fact finds that the landlord acted in knowing violation of or in reckless disregard of this Rent Stabilization chapter. The trier of fact may also award punitive damages to any plaintiff, including the city, in a proper case as defined by Cal. Civil Code § 3294.

(C) Any person who is convicted of violating this Rent Stabilization chapter shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not greater than $1,000 or by imprisonment in the county jail for not more than six months, or by both such fine and imprisonment.

(D) Any person, including the city, may enforce the provisions of this Rent Stabilization chapter by means of a civil action. The burden of proof in such cases shall be by preponderance of the evidence. The prevailing party in any civil action brought pursuant to this section shall be entitled to recover reasonable attorneys' fees and costs. A violation of this Rent Stabilization chapter may be asserted as an affirmative defense in an unlawful detainer action.

(E) Any person who commits an act, proposes to commit an act, or engages in any pattern and practice that violates this Rent Stabilization chapter may be enjoined therefrom by any court of competent jurisdiction. An action for injunction under this subsection may be brought by an aggrieved person, by the City Attorney, or by any person or entity who will fairly and adequately represent the interest of the protected class.

(F) This Rent Stabilization chapter may be enforced as provided in Chapter 2 of Title 1 of this code in addition to the remedies provided herein, which shall be in addition to any other existing remedies which may be available.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

For the sole purpose of reimbursing the city for the costs of administering this Rent Stabilization chapter, there is hereby imposed on each rental unit, subject to the provisions of this Rent Stabilization chapter, a regulatory fee ("rent program fee") to cover the costs to provide and administer the programs created by this chapter in such amount as the City Council may establish by resolution from time to time. Landlords subject to this Rent Stabilization chapter shall register all units subject to this chapter with the city and pay the rent program fee at such time and in such manner as established by City Council resolution.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)

The City Manager and City Attorney shall take or cause to be taken such actions necessary to implement this Rent Stabilization chapter and effectuate the intent of the City Council in adopting this Rent Stabilization chapter, including the preparation of informational materials and forms and promulgation of administrative regulations. The City Manager shall designate a city department to provide information and receive tenant complaints pertaining to violation of this chapter.

(Ord. 2219-C-S, passed 10-11-22; Am. Ord. 2227-C-S, passed 6-27-2023)