Campbell Municipal Code Ch. 6.09 Rental Increase Dispute Resolution

Footnotes:

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Prior ordinance history: Ords. 1301, 1419, 1460, 1532, 1619 § 1(part), and 1705 § 3.

It is found and declared that there is a growing shortage of and increasing demand for housing in the city of Campbell. This circumstance, coupled with increasing inflation, the rising cost of developing new housing, and other factors have put substantial upward pressure on residential rents, that have forced some tenants to move and which is disruptive to a stable living environment.

It is further found and declared that, in order to protect the health, safety and welfare of the citizens of Campbell, and promote and assure fair and reasonable return to property owners while promoting a safe, habitable, well maintained and stable housing environment, the city council enacts this chapter, and encourages property owners to limit rent increases to fair and reasonable amounts, provide greater than minimum advance notice of increases, limit the number of rent increases in any one year to as few as possible, provide well maintained living units, discourage retaliatory evictions, and cooperate with their tenants toward resolving any disputes. These needs include but are not limited to the prevention of excessive and unreasonable rent increases.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

If any provision or clause of this chapter or the application thereof to any person is held to be invalid, such invalidity shall not affect the other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are declared to be severable.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

Unless the context otherwise requires, the definitions set forth in this section govern the construction of this chapter.

"Capital improvements" means those improvements which materially add to the value of the property, appreciably prolong its useful life, or adapt it to new uses which are required to be amortized over the useful life of the improvements of the building pursuant to the straight-line depreciation provisions of the Internal Revenue Code, and the regulations issued pursuant thereto.

"City's designated agent" means the entity designated by resolution of the city council or ordinance of the city to facilitate implementation of this chapter.

"Costs of debt service" means the periodic payment or payments due under any security or financing devices which in obtaining such financing are required to be amortized for a period exceeding sixty months pursuant to the Internal Revenue Code and the regulations issued pursuant thereto, including but not limited to, interest costs of variable or fixed interest rate mortgages.

"Costs of operation and maintenance" means all expenses, exclusive of costs of debt service and costs of capital improvements incurred in the operation and maintenance of the rental unit and the building or complex of buildings of which it is a part, together with common areas, including but not limited to: real estate taxes, business taxes and fees, insurance, sewer service charges, utilities, janitorial service, professional property management fees, pool maintenance, exterior building and grounds maintenance, supplies, equipment, refuse removal, elevator service and security services or systems.

"Costs of rehabilitation" means the costs of any rehabilitation or repair work done on or in a rental unit or common areas of the housing complex containing the rental unit and which work was done in order to comply with an order issued by the Campbell building division, the Campbell community development department, or the Santa Clara County fire department, or its successor, or to repair damage resulting from fire, earthquake, or other natural disaster.

"Eviction" means any action taken by a property owner to remove a tenant involuntarily from a rental unit and terminate the tenancy, whether pursuant to a notice to quit, or by judicial proceedings, or otherwise.

"Fact Finding Committee." The fact finding committee shall consist of five individuals, appointed by the city council, two of whom shall be tenants, two of whom shall be rental property owners and one of whom shall be a neutral party and shall act as chairperson. At its discretion, the city council may appoint alternate members to the committee. A tenant member shall not participate in a proceeding involving a property owner from whom he or she rents residential property. A property owner member shall not participate in a proceeding involving rental property he or she owns. Members shall serve without monetary remuneration.

"Housing services" means those services which have been customarily provided and associated with the use or occupancy of a rental unit, including but not limited to, repairs, replacement, maintenance, painting, light, heat, water, elevator service, laundry facilities and privileges, janitorial services, refuse removal, furnishings, telephone, parking, security, and any other benefits, privileges or facilities and/or those services which are necessary to meet habitability standards for the unit.

"Land" means real property in the technical sense. The meaning of the word includes but is not limited to buildings, parking spaces, and mobile home spaces.

"Lease" means an agreement-written, oral, implied in fact, or implied in law-in which a property owner, for compensation, conveys the right to possess land to someone else for a period of time or from period to period.

"Mediator" means a person designated by the city who is selected based on their training in tenant/landlord law and economics of the rental industry. Mediators are chosen for their background and experience in mediation of tenant/landlord counseling.

"Property owner" means an owner, landlord, lessor or sublessor, who receives or is entitled to receive rent for the use and occupancy of any rental unit or portion thereof, and the agent, representative or successor of any of the foregoing.

"Rent" means the consideration, including any bonus, benefit or gratuity, demanded or received by a property owner for or in connection with the use or occupancy of a rental unit, or the assignment of a lease for a unit, including housing services or subletting.

"Rental unit" means a dwelling unit, mobile home or mobile home lot offered or available for rent in the city of Campbell together with the land and appurtenant buildings thereto, and all housing services, privileges, and facilities supplied in connection with the use or occupancy thereof, which unit is located in a structure or complex containing a multiple dwelling, boarding house, lodging house or mobile home park. The term "rental unit" shall not include:

(1) Rooms or accommodations in hotels, boarding houses or lodging houses, which are rented to transient guests for a period of less than thirty days; housing accommodations in any hospital, convent, monastery, extended care facility, asylum, nonprofit home for the aged, or in dormitories owned and operated by an institution of higher education, a high school or elementary school;

(2) Rental units owned or operated by any government agency or whose rent is subsidized by any government agency;

(3) Rental units, except mobile homes and mobile home lots, located on a parcel containing three or fewer dwelling units.

"Rent increase" means any additional rent demanded of or paid by a tenant for a rental unit or any significant reduction in housing services without a corresponding reduction in the money demanded or paid for rent, or a combination of additional rent demanded or paid and a reduction in housing services.

"Retaliatory eviction" means those acts prohibited by California Civil Code Section 1942.5, or Section 6.09.180 of this chapter.

"Suitable age and discretion" shall have the same meaning as used by state of California Civil Code of Procedures Section 1162.

"Tenant" means a person entitled by a written or oral agreement or by sufferance to occupy a rental unit to the exclusion of others and actually occupies said rental unit.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

(a) On or before the tenant or tenants take possession of the unit, the property owner shall provide to the tenant or tenants executing the rental or lease agreement, the following items:

(1) An information pamphlet prepared by the city, or the city's designated agent, consisting of no more than two 8 ½ inch by 14 inch sheets of paper, which describes dispute resolution procedures available under this chapter, and which shall be readily available from the city or its designated agent;

(2) A written document setting forth the name, address and telephone number of the property owner or the property owner's agents who shall be reasonably available between the hours of nine a.m. to five p.m., Monday through Friday, and authorized to resolve issues concerning rent, evictions, repairs, maintenance, and on-site services; and in the case of emergencies after hours and/or on weekends, a name and phone number shall be given to the tenants of a person or persons responsible for responding to such emergencies or after hour complaints;

(3) If the owner of rental property is someone other than the person whose name and address is disclosed pursuant to paragraph 2 of this subsection, the property owner shall also provide the tenant, in writing, with the name, address and telephone number of the owner, or the owner's authorized agent, who shall have the authority to resolve complaints regarding the person and issues identified in paragraph 2 of this subsection, and shall be reasonably available between the hours of nine a.m. to five p.m., Monday through Friday.

(b) No rent increase shall be effective or enforceable unless the information specified in subsection (a) of this section has been provided to the tenant whose rent is to be increased. The property owner shall maintain a copy of the documents described in this section.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

(a) The property owner shall provide the following written notice to any tenant receiving notice of a rent increase:

NOTICE: Chapter 6.09 of the Campbell Municipal Code provides a conciliation and mediation procedure for property owners and tenants to communicate when there are disputes over rent increases (rent increases can include a significant reduction in housing services). To use this non-binding procedure, the tenants shall first make a reasonable, good faith effort to contact the property owner or the property owner's agent to resolve the rent increase dispute. If not resolved the tenant may then file a petition within 45 calendar days from the date of this notice or within 15 calendar days following the effective day of the increase, whichever is later. There may be other tenants from your complex receiving a similar rent increase, in which case, the petitions will be combined. For more information you should contact the City's designated Agent at ________(telephone number of the City's designated Agent). Petitioning for conciliation can not guarantee a reduction in the rent increase.

(b) The name and telephone number of the city's designated agent shall be available from the community development department of the city of Campbell.

(c) The notice required by subsection (a) shall be provided to the tenant at the same time and in the same document or attached thereto as the notice of rent increase.

(d) The notice required by this section shall be of the same or greater print size as the rest of the document and be conspicuously placed on the document.

(e) No rent increase shall be effective absent compliance with this subsection.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

(a) Method of Service. The notices and information required to be served on the tenant by Sections 6.09.035 and 6.09.040 shall be served on at least one tenant in the unit of suitable age and discretion by one of the following methods:

(1) Having the information or notices delivered to the tenant in person; or

(2) Sending the notices or information by first class United States mail, postage prepaid, addressed to tenant at the tenant's address.

(b) Proof of Service. The following methods shall create a rebuttable presumption that the notices or information have been served on the tenant:

(1) A copy of the document served on tenant that bears the tenant's signature under the statement: "I hereby acknowledge that I have received a copy of this document;" or

(2) A declaration under penalty of perjury by a person who personally served the document, showing the time, place and manner of service, and the name of the tenant of suitable age and discretion upon whom the document was served; or

(3) A declaration of proof of service by mail prepared and executed in accordance with California Code of Civil Procedure Section 1013a by the property owner or an agent of the property owner.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

(a) Petitions Generally. Prior to filing a petition, the tenant shall make a reasonable, good faith effort to contact the property owner or the property owner's agent and resolve the rent increase issues, health and safety repair issues, or retaliatory evictions. If unsuccessful, the tenant may file a petition for conciliation and mediation with the city's designated agent. Once the petition is signed and submitted to the designated agent, no tenant's name shall be removed from a petition without his or her written consent.

(b) Rent Increases. Any tenant who is subject to a rent increase which is not exempt under the provisions of this chapter and who is not in default as to payment of the tenant's rent that is lawfully due may file a written petition which contains the following information:

(1) A written statement of the tenant, indicating the rental rates before and after the increase;

(2) The number of the total units in the complex;

(3) The date of the current and previous increase;

(4) The name and address of the property manager;

(5) Signature and unit number of petitioning tenant.

(c) Retaliatory Eviction.

(1) Any tenant who is not in default as to payment of the tenant's rent that is lawfully due and is issued an eviction notice within one hundred-eighty calendar days of filing a rent increase petition, may file a written petition for conciliation and mediation with the city's designated agent containing:

(A) The effective date of the eviction;

(B) The name and address of the property owner or property manager;

(C) The reason given for the eviction, if any;

(D) Signature and unit number of petitioning tenant.

(2) Nothing contained in this subsection is intended to alter or supersede any rights that the property owner may have to lawfully evict or remove a tenant from possession of a rental unit.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

(a) Except as otherwise provided in this chapter, a petition regarding a rent increase or retaliatory eviction must be filed with the city's designated agent no later than forty-five calendar days after the date of the notice of rent increase or notice to quit was served on tenant, or fifteen calendar days from the effective date of the rent increase or notice to quit, whichever is later.

(b) Notwithstanding subsection (a) of this section, if a tenant has not received lawful notice of a rent increase or eviction, the petition may be filed no later than six months after imposition of the rent increase or eviction.

(c) If a petition is timely filed under this section, the tenant may raise in evidence, during mediation, any and all rental increases affecting the petitioners that occurred within one year of the effective date of the currently proposed increase.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

A copy of the petition shall be mailed to the manager and/or owners of said complex by the city or its agent within five calendar days of receipt of same.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

The city or its agent may provide conciliation services to parties engaged in rental increase disputes. This is limited intervention in the dispute using letters and telephone and personal conversation in order to secure an agreement.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

If a rent increase dispute has not been resolved by conciliation within fifteen calendar days of the filing of the petition, the dispute will be assigned to a mediator and heard within the ensuing twenty-one calendar days.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

(a) Notice. The city or its agent shall provide written notice to the tenant and property owner at least ten calendar days prior to the mediation hearing, unless otherwise agreed by both parties.

(b) Attendance. Both the tenant and property owner or their designees, are required to attend the hearing fully prepared and authorized to negotiate in good faith. However, the tenant or the property owner may each reschedule the mediation date one time, with the concurrence of the city's designated agent, to a date not more than one week after the originally noticed mediation date. Concurrence of the city's designated agent will not be unreasonably withheld. Failure of the party who initiated the mediation to attend may be cause for the mediator to dismiss the petition.

(c) Statement of Reasons. At any time during the mediation, the mediator may request that the parties submit a written statement of reasons in support of the parties' positions. Upon this request, the parties shall submit written statements setting forth the reasons supporting each party's negotiating position. A written statement that merely sets forth that a party lacks authority to negotiate or is unwilling to negotiate will not comply with this requirement.

(d) Failure to Attend or Submit a Written Statement in Rent Mediations. In mediations initiated pursuant to Section 6.09.050(b) of the code, the failure of a property owner or the property owner's designee to comply with the attendance or statement requirements of this section shall have the following effect on the rent increase:

(1) In the event that the property owner or his designee fails to appear at mediation, the rent increase that is the subject of the petition shall be unenforceable until such time as the property owner or his designee schedules and appears for mediation;

(2) In the event that the property owner or the property owner's designee fails to comply with a request for a written statement pursuant to subsection (c) of this section, the rent increase that is the subject of the petition shall be unenforceable until such time as the property owner or the property owner's designee submits the written statement.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

The conference shall be conducted by a qualified mediator. The parties shall cooperate with the mediator, stating their positions on all issues, conferring with the mediator and each other and providing at the mediator's request, information and corroboration of their assertion of facts. Parties or their representatives may offer such documents, testimony, written declarations, or other evidence as may be deemed by the mediator to be relevant to the proceedings. If the parties do not reach agreement, the mediator shall prepare a written summary of the mediation and make it available to the city, its designated agent and the fact finding committee within ten calendar days of the mediation. If the parties reach an agreement, the mediator shall put the agreement in writing and the parties shall sign it.

An agreement shall apply only to those tenants who sign a petition and either appear at a mediation conference or, in writing, designate a spokesperson to act in the individual's behalf.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

(a) Rent Increases. When mediation concerning rent increases does not result in an agreement, either party may request the fact finding committee to render a determination. The request for fact finding shall be filed with the city or its designated agent within twenty-one calendar days of the mediation conference on a form provided by the city or its agent. The fact finding committee will conduct a hearing within twenty-one calendar days of the filing of a request for fact finding.

The city clerk shall provide written notice to the tenant and property owner at least ten calendar days prior to the fact finding committee hearing. If the agreement reached at mediation is breached at any time by either party, the other party may request the fact finding committee to review the situation and render a determination.

(b) Retaliatory Eviction. The results of a mediation concerning retaliatory evictions is not subject to review by the fact finding committee.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

The hearing shall be conducted by the members of the fact finding committee. The parties shall attend the hearing in person or by written proxy and cooperate with the committee and each other, and provide at the committee's request, information and corroboration of their assertions of facts. Parties or their representatives may offer such documents, testimony, written declarations or evidence as may be deemed by the committee to be relevant to the proceedings.

Based on the evidence presented at the hearing, and the standards set forth in this chapter, the fact finding committee shall make a written determination whether the proposed rent increase is reasonable. If a written mediation agreement was executed by the parties, the committee shall also render a determination whether that agreement has been breached.

The committee shall then mail their findings to both the tenants and the property owner within ten calendar days of the close of the hearing. The determination of the committee shall not be binding unless agreed to by both parties.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

If a party, or that party's representative, fails to attend a properly noticed hearing before the fact finding committee, the committee may, in its discretion and upon proof that the absent party has been given proper notice and a reasonable opportunity to attend, either proceed with the hearing and render a determination, or continue the matter to a more convenient time.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

The fact finding committee shall determine whether rent increases are reasonable under the circumstances, taking into consideration that the purpose of this chapter is to protect tenants from arbitrary, capricious, or unreasonable rent increases, while permitting property owners a fair and reasonable return on their property. The following standards shall be considered:

(a) Increase or decrease in cost of capital improvements;

(b) Increase or decrease in costs of maintenance and operation;

(c) Increase or decrease in costs of debt service;

(d) Increase or decrease in costs of rehabilitation;

(e) Increase or decrease in the provision of housing services;

(f) Existing market value of rents for similar units that are similarly situated;

(g) Return to property owner.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

(a) The city council may issue subpoenas requiring the attendance of a witness for evidence or testimony in any proceeding commenced under Chapter 6.09 of the Campbell municipal code.

(b) Subpoenas shall be signed by the mayor and attested to by the city clerk. They may be served as subpoenas are served in civil actions in accordance with the California Code of Civil Procedure.

(c) If any person duly subpoenaed neglects or refuses to obey a subpoena, or, appearing, refuses to testify or answer any questions which a majority of the city council decide proper and pertinent, the mayor or the mayor's designee shall report the fact to the judge of the superior court of the county for action pursuant to Section 37106 et seq. of the California Government Code.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

The parties may extend any of the deadlines or time limits of this chapter by written stipulation, signed by all the affected parties.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

No property owner shall increase rent, decrease services, cause a tenant to involuntarily quit the leased premises, bring an action to recover possession, or threaten to do any of such acts, or take any other adverse action against a tenant because of the tenant's exercise of the tenant's rights under this chapter.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).

Except as provided in subsection (b) of this section, violation of Section 6.09.180 of this chapter which deals with retaliatory eviction shall be punishable by the following criminal penalties:

(a) Violation of the provisions in Section 6.09.180 shall be infractions punishable by the following fines:

(1) A fine not exceeding one hundred dollars for the first violation;

(2) A fine not exceeding two hundred dollars for a second violation within one year;

(3) A fine not exceeding five hundred dollars for a third violation within one year;

(b) Notwithstanding any provision to the contrary, a fourth or subsequent violation of Section 6.09.180 in any one year period shall constitute a misdemeanor, and upon conviction be punishable by a fine of not more than one thousand dollars and/or imprisonment of not more than six months.

(Ord. 1978 Exh. A(part), 1998: Ord. 1946 Exh. A(part), 1997).