East Palo Alto Municipal Code Ch. 14.08 Withdrawal of Rental Units

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Editor's note— Ord. No. 306, §§ 1 and 2, adopted Sept. 18, 2007, amended Ch. 14.08 in its entirety to read as herein set out. Former Ch. 14.08, §§ 14.08.010—14.08.060, pertained to similar subject matter and derived from Prior code §§ 12-2.101—12-2.106.

A. Title. This chapter may be cited as the City of East Palo Alto Ellis Act.

B. Purpose. The City of East Palo Alto hereby acts pursuant to Government Code Chapter 12.75 (commencing with Sections 7060 et seq.) to establish certain requirements, procedures, restrictions and mitigations concerning the withdrawal of residential rental accommodations from rent or lease in accordance with Government Code Section 7060. The city also acts pursuant to its general police powers to protect the health, welfare and safety of its citizens. In adopting these provisions, it is the intent of the City of East Palo Alto to accord tenants the maximum protections which are available pursuant to Government Code Section 7060 and to provide certain additional rights and protections necessary to deal with the housing shortage in the City of East Palo Alto.

Nothing in this chapter shall otherwise diminish any power which currently exists or which may hereafter exist in the city to grant or deny any entitlement to the use of, or physical modifications to, real property, including, but not limited to, building, planning, zoning and subdivision map approvals. Nothing in this chapter shall entitle an owner of property which has been withdrawn from rent or lease to any special consideration in the granting of any entitlement to the use of said property, nor shall the fact that the property may be vacant be considered as a basis for granting any requested change in use.

(Ord. No. 306, § 1, 9-18-2007)

The council of the City of East Palo finds and determines that:

A. Government Code Chapter 12.75 (commencing with Section 7060 et seq.) permits owners of residential rental property to withdraw said property from rent or lease and evict tenants for this purpose while permitting local entities to impose restrictions, conditions and requirements upon property which is so withdrawn.

B. There is a continuing housing shortage and low vacancy rate in the City of East Palo Alto and the withdrawal of residential rental property from rent or lease will increase said shortage, making it more difficult for tenants displaced by said withdrawal to find other housing as well as making it more difficult for other persons seeking housing to obtain it.

C. Because of the housing shortage and low vacancy rate it is essential that tenants displaced through the withdrawal of residential rental property from rent or lease be given substantial advance notice to enable them to relocate to other housing.

D. Because of the housing shortage and low vacancy rate, it is essential that the maximum possible protections be given to tenants who may be displaced as a result of the withdrawal of residential rental property from rent or lease.

(Ord. No. 306, § 1, 9-18-2007)

For the purposes of this chapter, the following words and phrases shall have the meanings set forth below:

1. "Owner" means only the holder of record title having the entire legal and equitable title to the property, or the successor in interest thereto. It shall not include the lessor, sublessor, agent or representative of the landlord. It is the intention of this chapter to permit only the "owner" as defined herein to have and exercise the privileges and responsibilities set forth in this chapter.

2. "Tenant" means a renter, tenant, subtenant, lessee, or sublessee of a rental unit, or successor to a renter's interest, or any group of tenants, subtenants, lessees or sublessees of any rental unit, or any other person entitled to the use or occupancy of such rental unit and includes a former tenant displaced by the withdrawal of an accommodation from rent or lease.

3. "Qualified tenant" means any tenant who satisfies any of the following criteria on the date of service of the written notice of termination described in California Civil Code Section 1946:

a. "Low-income tenants" means persons and families whose income does not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, or as otherwise defined in Health & Safety Code Section 50079.5. The city shall maintain and provide to owners and tenants information concerning current income levels which qualify tenants as "low-income" under this section.

b. "Disabled" means a person with a disability, as defined in Section 12955.3 of the California Government Code.

c. "Elderly" means a person who is sixty-two (62) years of age or older.

d. "Dependent" means a person less than eighteen (18) years of age residing with and dependent upon a parent or guardian, or any other legal dependent (as determined for federal income tax purposes).

e. "Terminally ill" means a person who has a life-threatening disease from which the person will not recover, as certified to by the individual's treating physician.

4. "Accommodations" means either of the following:

a. The residential rental units in any detached physical structure containing four or more residential units.

b. With respect to a detached physical structure containing three or fewer residential rental units, the residential rental units in that structure and in any other structure located on the same parcel of land, including any detached physical structure specified in subparagraph (a).

5. "Rent control" means the system of controls on residential rents and evictions established pursuant to the 1988 Rent Stabilization and Eviction for Good Cause Ordinance, or the 2010 Rent Stabilization and Just Cause for Eviction Ordinance, including all amendments thereto, and any successor ordinance regulating residential rents in East Palo Alto.

6. "Withdrawal" means the eviction of all tenants from units on a particular property through compliance with the requirements of this chapter and implementing regulations. Such withdrawal results in a removal of rental units from the housing market under the terms and conditions set forth in this chapter, and as such is a limited form of removal by means other than conversion or demolition. To the extent that owners of withdrawn units desire to convert such units to other uses, including but not limited to condominiums, community apartments, stock cooperatives, other forms of owner-occupancy, or other change in use, or to permanently remove them from the rental housing market by demolition, or otherwise remove them by means other than withdrawal, such owners must obtain all required permits and approvals from the city in addition to complying with the provisions of this chapter.

(Ord. No. 306, § 1, 9-18-2007; Ord. No. 352, § 1, 12-20-2011; Ord. No. 376, § 1, 5-6-2014)

Any accommodations which have been withdrawn from rent or lease and which were subject to rent control at the time of withdrawal, consistent with the provisions of Government Code Section 7060 et seq., as they currently exist or may be amended in the future, shall be subject to the following conditions and restrictions if the accommodation is again offered for rent or lease:

A. Two Year Period. If the accommodations are offered again for rent or lease for residential purposes within two years of the date the accommodations were withdrawn from rent or lease, the following provisions shall apply:

1. The owner of the accommodations shall be liable to any tenant who was displaced from the property by the withdrawal for actual and exemplary damages. Any action by a tenant pursuant to this paragraph shall be brought within three years of the tenant's displacement. However, nothing in this section shall preclude a tenant from pursuing any additional or alternative remedy available under law. Nothing in this section shall limit or otherwise affect any relocation benefits to which the tenant is entitled under any other law or ordinance.

2. The city may institute a civil proceeding against any owner who has again offered accommodations for rent or lease subject to this section for exemplary damages for displacement of tenants. Any action brought by the city shall be brought within three years of the withdrawal of the accommodations. Nothing in this section shall be construed to limit any other powers of the city to pursue litigation in any way involving the subject property.

3. Any owner who offers accommodations again for rent or lease shall first offer the unit for rent or lease to the tenant displaced from that unit by the withdrawal, if the tenant has advised the owner in writing within thirty (30) days of the displacement of his or her desire to consider an offer to renew the tenancy and has furnished the owner with an address to which that offer is to be directed. That tenant or former tenant may advise the owner at any time during the period of eligibility for renewed tenancy of any change in address to which the offer is to be directed. The owner shall also notify the city of the owner's intent to again offer the accommodations for rent or lease at the time the tenant is notified. In addition to the notice required to be given to the tenant, the city shall be deemed to be an agent of the tenant and may request that an offer to renew the tenancy be extended to the tenant. However, nothing in this section shall be construed to relieve the owner of the obligation to directly contact the tenant or former tenant and to advise the tenant that the accommodations are again offered for rent or lease. Notice shall be on a form approved by the city.

4. If the owner offers the accommodations for rent or lease pursuant to this subdivision, and the tenant has advised the owner of a desire to consider an offer to renew the tenancy, then the owner shall offer to reinstitute a rental agreement or lease on terms permitted by law to that displaced tenant. The terms shall be substantially equivalent to those formerly existing during the tenancy. This offer shall be deposited in the United States mail, by registered or certified mail with postage prepaid, addressed to the displaced tenant at the address furnished to the owner as provided in this subsection, and shall describe the terms of the offer. A copy of the notice with proof that it has been mailed to the displaced tenant shall be filed with the city at the time notice is mailed to the tenant. The displaced tenant shall have thirty (30) days from the deposit of the offer in the mail to accept by personal delivery of that acceptance or by deposit of the acceptance in the United States mail by registered or certified mail with postage prepaid. The city upon learning of the owner's intent to again offer the accommodation for rent or lease shall also attempt to notify each tenant by mail and may further publish notices or advertisements in newspapers or use other reasonable means to attempt to notify the tenants of the availability of the accommodations.

5. The accommodations shall be subject to the 2010 Rent Stabilization and Just Cause for Eviction Ordinance.

B. Five Year Period.

1. For all tenancies commenced during either of the time periods described in subsections B.1.a. and B.1.b. below, the notice provisions set forth with regard to the two-year period shall apply and the accommodations shall be offered first to the previously displaced tenants, and rented or leased at the lawful rent in effect at the time any notice of intent to withdraw the accommodations was filed with the city, plus annual adjustments available under the rent control system.

a. The five-year period after any notice of intent to withdraw the accommodations is filed with the city, whether or not the notice of intent is rescinded or the withdrawal of the accommodations is completed pursuant to the notice of intent.

b. The five-year period after the accommodations are withdrawn.

2. The accommodations shall be subject to the 2010 Rent Stabilization and Just Cause for Eviction Ordinance.

3. This section shall prevail over any conflicting provision of law authorizing the landlord to establish the rental rate upon the initial rent or lease of the accommodations.

4. A tenant or the city may bring a legal action as set forth with regard to the two-year period within six years of the withdrawal of the accommodations. Nothing in this section shall preclude a tenant from pursuing any additional or alternative remedy available under law. Nothing in this section shall be construed to limit any other powers of the city to pursue litigation in any way involving the subject property.

C. Ten Year Period. An owner who offers accommodations again for rent or lease within ten (10) years of the date on which they are withdrawn shall notify the city of an intention to offer the accommodations again for residential rent or lease. A copy of the notice served on the city shall also be mailed by the owner to each tenant at that tenant's last known address. The city may also attempt to notify each tenant by mail and may further publish notices or advertisements in newspapers or use other reasonable means to attempt to notify the tenants of the availability of the accommodations. If the displaced tenant so requests in writing within thirty (30) days after the owner has notified the city of the intent to again offer the premises for rent or lease, the owner shall offer to reinstitute a rental agreement or lease on terms permitted by law to that displaced tenant. In the event that the owner fails to comply with this subsection, the owner shall be liable to any affected tenant for general damages and punitive damages in an amount which does not exceed the contract rent for six months.

(Ord. No. 306, § 1, 9-18-2007; Ord. No. 352, § 2, 12-20-2011; Ord. No. 376, § 2, 5-6-2014)

If any accommodations which have been withdrawn from rent or lease were subject to the 2010 Rent Stabilization and Just Cause for Eviction Ordinance at the time of withdrawal are demolished, and new accommodations are constructed on the same property, and offered for rent or lease within five years of the date the accommodations were withdrawn from rent or lease, any displaced tenant shall have the right to return and all of the newly constructed replacement accommodations shall be subject to the 2010 Rent Stabilization and Just Cause for Eviction Ordinance notwithstanding any provision of law which otherwise exempts newly constructed units. The city shall have the power to set rents which will provide a fair return and the landlord shall have the burden of establishing by competent evidence that the rent schedule proposed by the landlord is necessary to provide a fair return. If necessary, the city may establish an initial rent and graduated step increases to reach a fair return level. The fair return rent level shall thereafter become the base rent for the unit for all purposes, including but not limited to, the computation of all future rent adjustments. The landlord's right to set rent levels for subsequent tenancies is subject to Civil Code Section 1954.50 et seq., (the Costa-Hawkins Rental Housing Act).

(Ord. No. 376, § 3, 5-6-2014)

An owner who intends to withdraw an accommodation subject to rent control from rent or lease shall provide the following notices. Notices shall be provided in English and Spanish and any other language necessary to communicate with tenants in order to clearly inform them of their rights as required by this chapter. Copies of notices and forms shall be made available if a tenant indicates the items have been misplaced or lost or are otherwise needed. The owner shall determine whether a member of the household of each unit can speak English and seek appropriate assistance in communicating the importance of the contents of the notice to any household whose members cannot speak English.

1. No less than one hundred twenty (120) days prior to the date upon which the accommodation is to be withdrawn, the owner shall provide written notice to each tenant on the property of the owner's intent to withdraw said accommodation. The notice shall be on forms approved by the city or its designated agency. The notice shall contain a statement that the accommodation is withdrawn, that all of the accommodations on the parcel are being withdrawn, the date upon which the accommodation is to be withdrawn, that the owner has paid all fees due the city or its designated agency pursuant to Section 14.08.090, and a statement that all tenants are entitled to a relocation payment and the amount thereof pursuant to Section 14.08.060. The notice also shall include information on additional relocation payments available to those who are "qualified tenants" as defined in Section 14.08.030. The notice shall include the owner's offer to rent or lease any available residential unit that he or she owns, pursuant to Section 14.08.070. The notice shall be served on each tenant by either personal service or certified mail, return receipt requested. It shall advise the tenant of the tenant's rights to regain possession of the premises and to damages as set forth in Section 14.08.040. A copy of this notice shall be filed with the city or its designated agency. The notice shall be accompanied by easy to complete forms, postage prepaid, addressed to the owner and the city or its designated agency by which the tenant can represent whether he or she qualifies for additional relocation assistance as a "qualified tenant." A notice stating the owner's intent to withdraw the accommodation from rent or lease shall not be valid unless the tenants of all of the units on the property are also served with notice that each of their units is to be withdrawn from rent or lease and unless all fees due the city or its designated agency pursuant to Section 14.08.090 have been paid.

2. A notice of termination of tenancy having an effective date no earlier than one hundred twenty (120) days after the date of service shall also be served on each tenant at the same time the notice stating the intent to withdraw the premises from rent or lease is served on the tenant.

3. Not less than one hundred twenty (120) days prior to the date upon which the accommodations are to be withdrawn, the owner shall notify the city or its designated agency of the intention to withdraw those accommodations from rent or lease. The notice shall be on a form approved by the city or its designated agency, and shall contain statements, under penalty of perjury, providing information on the number of accommodations, the address or location of those accommodations, the name(s) of the tenant(s) of the accommodations and the rent applicable to each residential unit. The notice required to be filed by this subsection shall be maintained by the city or its designated agency in files other than those maintained pursuant to the Rent Stabilization and Just Cause for Eviction Ordinance. The information contained in the notice required by this subsection respecting the name(s) of the tenant(s), the rent applicable to any unit, or the total number of units, is confidential and shall be treated as confidential information for the purposes of the Information Practices Act of 1977, as contained in Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code. The city or its designated agency shall, to the extent required by the preceding sentence, be considered an "agency" as defined by subdivision (b) of Section 1798.3 of the Civil Code. However, nothing in this subsection shall be construed as making any information maintained by the rent stabilization board, pursuant to any rent stabilization ordinance, confidential.

4. At the time the notice specified in subsection 3 above is filed with the city or its designated agency the owner shall record with the county recorder a memorandum of the required notice, summarizing its provisions, other than the confidential provisions, on a form approved by the city or its designated agency.

The owner shall also file and record a certificate, on a form approved by the city or its designated agency, that actions have been initiated as required by this chapter and other applicable law to terminate any existing tenancies. If the owner has satisfied the requirements of this section, the date upon which the accommodations are withdrawn from rent or lease for the purposes of this chapter is one hundred twenty (120) days from the date of delivery in person or by first-class mail of notice to the city or its designated agency. If the notice has not been given and recorded as specified herein, the date upon which the accommodations are withdrawn shall be one hundred twenty (120) days after the memorandum summarizing the notice is recorded with the county recorder.

5. At the time notice is given to the city or its designated agency as required, the owner shall notify any tenant to be displaced that the city or its designated agency has been so notified, that the notice specified the name of the tenant and the current amount of rent paid by the tenant as an occupant of the accommodation and the current amount of rent the owner specified, including any discounts provided or separate fees charged, in the notice to the city or its designated agency. The notice shall also contain a statement of the tenant's rights to regain possession and to damages, in the event the accommodation is again offered for rent or lease, as set forth in Section 14.08.040. A copy of the notice shall be filed with the city or its designated agency with proof of service upon each tenant.

6. Not less than one hundred twenty (120) days prior to the date upon which the accommodations are to be withdrawn, the owner shall provide to the tenant two (2) copies of a notice containing language substantially identical to the following: "I assert that I have lived in this unit at least one (1) year prior to having been notified that I am to be evicted from this unit under the City of East Palo Alto's Ellis Ordinance (EPA Ellis Act, et al.). I further assert that I am a disabled person under the meaning of California Government Code Section 12955.3, or a non-minor dependent or terminally ill person as defined in East Palo Alto Municipal Code Section 14.08.030. It is my understanding that I am entitled to one (1) year's notice prior to surrendering this unit to its owner." With this notice, the tenant shall be enabled by the owner to assert to both the owner and the city that she or he is disabled, a non-minor dependent or terminally ill.

7. Not less than one hundred twenty (120) days prior to the date upon which the accommodations are to be withdrawn, the owner shall provide to the tenant two (2) copies of a notice containing language substantially identical to the following: "I assert that I have lived in this unit at least one (1) year prior to having been notified that I am to be evicted from this unit under the City of East Palo Alto's Ellis Ordinance (EPA Ellis Act, et al.). I further assert that I am sixty-two (62) years or older. It is my understanding that I am entitled to one (1) year's notice prior to surrendering this unit to its owner." With this notice, the tenant shall be enabled by the owner to assert to both the owner and the city that she or he is sixty-two (62) years or older.

8. If the tenant or lessee is at least sixty-two (62) years of age, disabled, a non-minor dependent or terminally ill, and has lived in his or her accommodations for at least one (1) year prior to the date of delivery of the notice of intent to withdraw to the city, then the date of withdrawal of the accommodations of that tenant or lessee shall be extended to one (1) year after the date of delivery of the notice to the city, provided that the tenant or lessee gives written notice of his or her entitlement to an extension to the owner within sixty (60) days of the date of delivery to the city of the notice of intent to withdraw. The tenancy shall be continued on the same terms and conditions as existed on the date or delivery to the city of the notice of intent to withdraw, subject to the rent control provisions and to any obligations under the lease or rental agreement. If the tenant notifies the owner of an entitlement to an extension, within thirty (30) days of the notification by the tenant, the owner shall give written notice to the city of the claim that the tenant is entitled to stay in the accommodation for one (1) year after the date of delivery to the city of the notice of intent to withdraw.

(Ord. No. 306, § 3, 9-18-2007; Ord. No. 352, § 3, 12-20-2011)

A. Relocation Assistance. Any owner who serves a notice of eviction on a tenant pursuant to provisions of this chapter shall pay to such tenant relocation assistance in accordance with this section. The relocation assistance shall be due and payable to the tenant whether or not the owner actually utilizes the unit for the purposes stated in the notice of eviction, unless the owner notifies the tenant in writing of the withdrawal of the notice of eviction prior to such time as the tenant has given the owner notice of his or her last date of occupancy, or has vacated if notice of the last date of occupancy is not given by the tenant, and files a copy of the notice with the city clerk within one (1) week after serving notice on the tenant.

1. Each tenant, as defined in Section 14.08.030, of any residential rental unit who is required to move as a result of the owner's withdrawal of the accommodation from rent or lease shall be entitled to a relocation payment from the owner. Only adults and emancipated minors occupying the rental unit at the time of service on the tenants of the notice of intent to withdraw the units from rent or lease shall be entitled to a relocation payment.

Residing on property for less than two (2) years .....$7,500.00

Residing on property for two (2) years or longer .....$10,000.00

2. A tenant who, at the time of the notice of intent to withdraw rental units is filed with the city, is a "qualified tenant" as defined in Section 14.08.030 shall be entitled to receive an additional payment of two thousand five hundred dollars ($2,500.00). If more than one additional payment category applies, the owner shall provide payment for each category.

3. At the time of filing the notice of intent specified in Section 14.08.050, the owner shall deposit the relocation payments specified in this section into escrow with the city. The city or its designated agent shall distribute these funds to the tenants upon request.

4. In order to claim entitlement to the additional two thousand five hundred ($2,500.00) relocation payment, a tenant must mail or hand-deliver the forms provided under Section 14.08.050 as required by that section. The owner shall deposit the additional relocation payment in escrow in trust for any tenants who claim to qualify for additional relocation assistance within ten (10) days after such form is mailed or delivered. Thereafter, the city or its designated agent shall distribute amounts held in escrow as follows:

a. If no written challenge is made to the tenant's claim of entitlement to additional relocation assistance within ten (10) days after the form provided is mailed or delivered, the city shall release the relocation assistance to the tenant upon request.

b. If the city receives conflicting information or assertions which indicate that there is a dispute or uncertainty concerning the tenant's qualification for additional relocation assistance, the city shall continue to retain the disputed relocation assistance funds in escrow. The city then shall release the relocation assistance funds to either the tenant or the owner upon receipt of either a written agreement by both the owner and the affected tenant or an order of a court of competent jurisdiction.

5. Commencing April 1, 2012 the relocation payments specified in Section 14.08.060 shall increase annually at the rate of increase in the Consumer Price Index (CPI) for All Items for All Urban Consumers for the San Francisco-Oakland-San Jose Area for the preceding calendar year, as that data is made available by the United States Department of Labor.

6. The owner may rescind the notice of intent to withdraw the accommodation from rent or lease and the notice of termination of tenancy prior to any release of relocation payment to the tenants by serving written notice stating such rescission on the tenants. In such instance, the relocation payment shall be released to the owner. Subsequent to the release of any relocation payment to a tenant, the owner may rescind the notice of intent to withdraw the accommodation from rent or lease and the notice of termination of tenancy only upon the written agreement of the tenants to remain in possession of the rental unit. If the tenants remain in possession of the rental units after service of an owner's written notice of rescission of the eviction, the tenants shall provide an accounting to the owner of the amount of the relocation payment expended, return to the owner that portion of the relocation payment not expended, and assign to the owner all rights to recover the amount of relocation payment paid to third parties.

7. Where an owner has served a notice of intent to withdraw an accommodation from rent or lease on a tenant prior to July 1, 2011 and withdrawal of the accommodation has not been completed, the owner shall give notice as specified in Section 14.08.050 to all tenants, including any tenants who have already vacated their rental units, that all tenants qualify for relocation assistance and that elderly, disabled and terminally ill tenants and those with dependents qualify for additional relocation assistance. The owner shall deposit the full relocation payment in escrow in trust for all tenants and for the elderly, disabled and terminally ill tenants and those with dependents who return the forms provided under Section 14.08.050 as required by that section. The owner shall also increase the amount of the relocation assistance deposited into escrow for each tenant to the amount specified in Section 14.08.060.

8. If a relocation payment is in dispute for any reason, the owner shall place the disputed payment in an escrow account with the city until the dispute is resolved. Failure of the owner to make any payment specified herein shall be a defense to any action to recover possession of a rental unit based upon the owner's intent to withdraw the accommodation from rent or lease. In addition, if tenants of a rental unit who qualify for relocation assistance have vacated the unit as a result of a notice of intent to withdraw the accommodation from rent or lease, and the owner fails to make any payment specified herein, the owner shall be liable to the tenants for three times the amount of the payment as well as reasonable attorney fees.

B. Extension of Occupancy to Avoid Disruption to School Year. Any accommodation subject to rent control in which there are dependent minor children enrolled in school shall not be required to be vacated during the course of the school year. Not less than sixty (60) days prior to the date upon which the accommodations are to be withdrawn, the owner shall provide to the tenant two (2) copies of a notice and response forms containing language substantially identical to the following: "I assert that I have one or more minor children attending school. It is my understanding that I am entitled to remain in this unit during the school year. The school(s) being attended is/are____________________________." With this notice and forms, the tenant shall be enabled by the owner to assert to both the owner and the city that there are dependent minor children residing in the accommodation. If the tenant notifies the owner of the entitlement to an extension on this basis, within thirty (30) days of the notification by the tenant, the owner shall give written notice to the city of the claim that the tenant is entitle to stay in the accommodation during the school year. Tenants receiving such an extension are required to vacate within twenty-one (21) days following the last day of school.

C. Displacement Plan.

1. For each accommodation subject to rent control from which tenants are displaced due to withdrawal of the accommodation from rent or lease, prior to service of a notice to terminate tenancy, the owner shall prepare a displacement plan which must be approved by the rent stabilization program prior to service of a notice to terminate tenancy. The displacement plan shall identify the special needs of the displaced tenants, identify the types of assistance that will be provided and include a commitment to pay for any such assistance. At the time of submitting the displacement plan to the city for review and approval, the owner shall pay a fee to the city for such review and approval, as set forth in the master fee schedule.

2. In lieu of the displacement plan required, an owner may pay a counseling assistance fee to the city in the amount of five hundred dollars ($500.00) for each withdrawn accommodation, to be used by the city to pay for counseling or other assistance required by displaced tenants as a result of withdrawal. The amount of the counseling assistance fee is subject to annual adjustment as set forth with regard to relocation payments.

D. Moving Costs. For each accommodation subject to rent control from which tenants are displaced due to withdrawal of the accommodation from rent or lease, the owner shall pay actual moving costs up to the amount of two thousand five hundred dollars ($2,500.00) upon the provision of receipts. In lieu of actual moving costs, the owner and tenant may agree that the owner will pay to the tenant one thousand five-hundred dollars ($1,500.00) prior to the move. The amount of the moving cost payment is subject to annual adjustment as set forth with regard to relocation payments.

(Ord. No. 306, § 1, 9-18-2007; Ord. No. 352, § 4, 12-20-2011)

1. Where an owner withdraws his or her residential rental accommodations subject to rent control from rent or lease, he or she shall offer for rent or lease any available residential rental units in East Palo Alto that he or she owns, at a comparable rent, to any tenant who is required to move as a result of the owner's withdrawal of the accommodations from rent or lease. Accommodations shall be considered available if vacant at the time the owner provides notice to the city of his or her intent to withdraw his or her residential rental accommodations from rent or lease pursuant to Section 14.08.050, or if the accommodation becomes vacant at any time prior to the tenant vacating the withdrawn accommodations. The rent or lease of an accommodation in this situation is not considered a new tenancy but the continuation of an existing tenancy, subject to the city's rent control provisions.

2. The owner shall inform each tenant of the owner's offer to rent or lease any available residential unit that he or she owns in the withdrawal notice.

3. If the tenants displaced by the withdrawal of the residential rental accommodations are greater in number than the available residential rental units, the owner shall offer the accommodations to all displaced tenants and give a priority to renting or leasing such available units to any disabled, elderly, terminally ill or displaced tenants with dependents. If none of the tenants are elderly, disabled, terminally ill or those with dependents, the owner shall give each displaced tenant equal priority in the renting or leasing of such available units.

(Ord. No. 306, § 1, 9-18-2007; Ord. No. 352, § 5, 12-20-2011)

After receipt of a notice issued by an owner pursuant to Section 14.08.050, the city or its designated agency may cause to be recorded with the County Recorder a notice which shall recite the fact that the City of East Palo Alto has determined to apply the constraints adopted pursuant to Government Code Section 7060.2 to successors in interest to the subject property. The notice shall specifically describe the real property where the accommodations are located, the date upon which the owner will withdraw the accommodations from rent or lease and the dates during which the constraints adopted pursuant to Government Code Section 7060.2 shall apply. If the date upon which the accommodations are to be withdrawn is subsequently altered or modified, the city or its designated agency may record an amended notice. The filing of the notice described in this subsection shall not be construed as a finding by the city or its designated agency that the actual or proposed withdrawal of the accommodations has been approved by the city or its designated agency.

(Ord. No. 306, § 1, 9-18-2007; Ord. No. 352, § 6, 12-20-2011)

The city or its designated agency shall establish fees for city-incurred costs which shall be paid by any owner who exercises the privilege to withdraw accommodations subject to rent control from rent or lease. The city or the designated agency shall set the fee so as to recover all costs of administering this chapter. The fees shall be paid prior to the service of the notice set forth in Section 14.08.050(1). Failure to pay the fees prior to service of the notice shall invalidate the notice.

(Ord. No. 306, § 1, 9-18-2007; Ord. No. 352, § 7, 12-20-2011)

In any action to recover possession of an accommodation subject to the terms of this chapter, it shall be a defense if the owner has not fully satisfied all of the requirements of this chapter including, but not limited to, compliance with all notice requirements, payment of fees to the city or its designated agency, and payment of relocation benefits to displaced tenants.

(Ord. No. 306, § 1, 9-18-2007)

1. Three Month Filing Requirement. Within three (3) months of a tenant's vacation of an accommodation, an owner who withdrew a rental pursuant to the provisions of this chapter shall file with the rent stabilization program a statement under penalty of perjury regarding the status of the accommodation.

2. Annual Filing Requirement. An owner who withdrew a rental pursuant to the provisions of this chapter shall, within thirty (30) days preceding the first, fifth and tenth year anniversary of the tenant's vacation of an accommodation, file with the rent stabilization program a statement under penalty of perjury regarding the status of the accommodation. This requirement will be waived if prior to a required filing date, an application has been filed with the city for demolition or redevelopment of the property.

(Ord. No. 352, § 8, 12-20-2011)

Any withdrawal action taken pursuant to this chapter must be within eighteen (18) months of the time notice of intention to withdraw is first given pursuant to Section 10.08.050. If a withdrawal of an accommodation is not completed within that time period, it shall be considered void and of no further force and effect.

(Ord. No. 352, § 8, 12-20-2011)