Oakland Municipal Code Art. IV Rent Program Service Fee

A. Establishment of the Fee. The rent program service fee (the "fee") is hereby established. The fee and any penalties or costs for late or non payment of the fee are dedicated solely to the payment or services and costs of the rent adjustment program and may be used only for the administration, outreach, legal needs, enforcement of Chapter 8.22 (including the rent adjustment program and the Just Cause for Eviction Ordinance), collection of this fee, and other costs of the rent adjustment program and cannot be used for any other purpose. The City Manager shall develop procedures for collection of the fee and ensuring that all funds generated by the fee will be used only for the rent adjustment program. The fee is to be charged against any residential rental unit that is subject to either the Rent Adjustment Ordinance, the Just Cause for Eviction Ordinance, or both.

B. Definitions.

1. "Rental property owner" includes an owner as defined in the Rent Adjustment Ordinance (O.M.C. 8.22.020) or a landlord as defined in the Just Cause for Eviction Ordinance (Measure EE, Section 4A).

2. "Tenant" has the same meaning as that term is defined in the Rent Adjustment Ordinance (O.M.C. 8.22.020).

C. Amount of Fee. The amount of the fee shall be set by the City Council in the master fee schedule. For the city's fiscal years of 2001—2002, and 2002—2003 the fee is set at twenty-four dollars ($24.00) per covered unit. Each fiscal year the City Manager shall report to the City Council on the costs of the rent adjustment program for the preceding fiscal year and the anticipated costs of the rent adjustment program for the coming year.

D. Residential Rental Units Subject to the Fee. The fee is to be charged on a per unit basis against all residential rental units that are either covered units or are covered by the Just Cause for Eviction Ordinance, except such residential rental units that are owned or operated by a public entity, including, but not limited to, the City of Oakland, the Redevelopment Agency of the City of Oakland, and the Oakland Housing Authority. A rental property owner who does not timely pay the fee because the rental property owner claims the dwelling unit is not subject to the fee must pay all fees, delinquent charges, interest, and collection costs for any dwelling unit that is found by the city to be subject to the fee. Neither the fact that a rental property owner paid the fee nor that a rental property owner claimed dwelling units are not subject to the fee can be used as evidence in any determination of a petition with the rent adjustment program or in a court proceeding regarding whether the subject dwelling unit is covered by the Rent Adjustment Ordinance or the Just Cause for Eviction Ordinance.

E. Fee Based on Business Operation. The fee is a fee associated with the operation of a residential rental property business and not a fee based on ownership of real property.

F. Due Date for Fee. For the first fiscal year of 2001—2002, the fee will be due on March 1, 2002 and will be deemed delinquent if not paid by May 1, 2002. For all subsequent fiscal years, the fee will be due on January 1, and will be deemed delinquent if not paid by March 1.

G. Passthrough of One-Half (½) of Fee. For rental properties that are covered by the Rent Adjustment Program, a rental property owner may pass through one-half (½) of the fee to a tenant in the year in which it is due, unless the owner does not pay the fee before the date it is deemed delinquent. A rental property owner may not pass through any penalties, delinquent charges, or interest to a tenant. Rental properties that subject to the fee, but are not covered by the Rent Adjustment Program are not subject to the limitation in this Subsection 8.22.500 G.

H. Delinquent Owner. A rental property owner who has not paid the fee and any charges related to a delinquency in payment of the fee cannot:

1. Respond to a petition brought by a tenant; or

2. Petition for a rent increase.

I. Delinquent Charges, Interest, and Collection Costs.

1. An owner who does not pay the fee on or before the date it is considered late must pay a delinquency charge according to the following schedule:

a. Ten percent (10%) of the fee due if paid in full within thirty (30) days of the date it is considered late;

b. Twenty-five percent (25%) of the fee due if paid in full within sixty (60) days of the date it is considered late;

c. Fifty percent (50%) if paid after sixty (60) days of the date it is considered late.

2. In addition to the delinquent charges, a rental property owner who fails to remit the fee due by the date it is late shall pay simple interest at the rate of one percent (1%) per month or fraction thereof on the amount of the fee inclusive of delinquent charges from the date the fee is late.

3. A rental property owner who has not paid the fee by the end of the fiscal year in which it is due may also be assessed the city's costs of collecting the fee, including the city's administrative costs of collection and any attorney's fees whether incurred by the City Attorney's Office or by outside counsel.

4. The amount of any fee, delinquent charges, interest, and collection costs imposed by Chapter 8.22 shall be deemed a debt to the city and any rental property owner carrying on a residential rental business without paying the fee and/or any delinquent charges, interest or collection costs shall be liable in an action in the name of the city in any court of competent jurisdiction, for the amount of the fee and any tax and delinquent charges, interest or collection costs imposed. An action to collect the fee must be commenced within three (3) years of the date the fee became due. An action to collect delinquent charges, interest or collection costs for nonpayment of the fee must be commenced within three (3) years of the date such accrues.

J. Severability. This O.M.C. Article 8.22.500 shall be liberally construed to achieve its purposes and preserve its validity. If any provision or clause of this Chapter or application thereof to any person or circumstances is held invalid, such invalidity shall not affect 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 and are intended to have independent validity.

K. Nonwaiverability. Any provision, whether oral or written, in or pertaining to a rental agreement whereby any provision of this O.M.C. Chapter 8.22, Article IV (8.22.500) is waived or modified, is against public policy and void.

L. Effective Date.

1. The ordinance codified in this O.M.C. Chapter 8.22, Article IV (8.22.500) takes effect this section chapter take effect pursuant to Section 216 of the Oakland City Charter.

2. For rental units covered only by the Just Cause for Eviction Ordinance (O.M.C. Chapter 8.22 Article II (8.22.300)) and not by the Rent Adjustment Ordinance (O.M.C. Chapter 8.22 Article I (8.22.100)), the fee shall be charged to such rental units in the fiscal year beginning July 1, 2003.

(Ord. No. 13695, § 2, 6-21-2022; Ord. No. 12517 § 1, 2003)

A. Starting on March 1, 2023, rental property owners of units subject to Section 8.22.500 D. shall be required to report certain information about their units to the City, as set forth in Section 8.22.530. Rental property owners shall report the information using a form prepared by the City. The City Administrator may, in addition or in lieu of a paper form, develop an electronic form or a secure internet website for rental property owners to submit the required information. The City Administrator may also develop procedures for tenants to also report information about their units, but in that event reporting by tenants shall be optional rather than required.

B. Deadline for Submission of Registration Form. For 2023, rental property owners shall complete and submit to the City the registration form on or before July 1, 2023. For 2024, rental property owners shall complete and submit to the City the registration form on or before July 1, 2024. For all subsequent years, the deadline shall be March 1.

C. Failing to Register. A rental property owner of a covered unit, as defined in O.M.C. 8.22.020, who fails to substantially comply with the registration requirement, but otherwise qualifies to petition or respond to a petition filed with the Rent Adjustment Program, will forfeit six (6) months of the rent increase sought unless the owner cured the failure to register. A rental property owner may cure the failure to register required by this Section and not be subject to a forfeiture of a rent increase if the rental property owner substantially complies with the registration requirement six (6) months prior to serving the rent increase notice on the tenant or, in the case of an owner petition, at least six (6) months prior to filing the petition.

(Ord. No. 13774, § 1, 12-19-2023; Ord. No. 13710, § 1, 12-6-2022; Ord. No. 13695, § 1, 6-21-2022)

The registration form shall include the following information as of the date specified on the form for each unit subject to Section 8.22.500 D.:

A. The address of the rental unit (including rental unit number); and

B. The name, address, and contact information of each person or entity that is the rental property owner, or if more than one (1), each rental property owner of the rental unit; and

C. The name, address, and contact information of each person or entity that is the property manager of the rental unit; and

D. Current tenancy information, including:

1. Tenant name and email address;

2. Number of tenants occupying the unit (as listed on original lease or after adding additional occupant(s) as defined in O.M.C. 8.22.020);

3. Occupancy status—If occupied, the tenancy start date (tenant move-in date);

4. Effective date of last rent increase for each rental unit;

5. Amount of initial base rent at inception of tenancy;

6. Whether the unit is subsidized or otherwise assisted;

7. Amount of security deposit charged at inception of tenancy.

E. Prior tenancy information, including:

1. Ending date of tenancy;

2. Reason for end of tenancy—Voluntary, no fault eviction, eviction, or owner move-in.

F. Rental property information for the rental unit, including:

1. Number of bedrooms and bathrooms;

2. Housing services included (water/sewer, refuse/recycle, natural gas, electricity, parking, etc.), along with any additional fees; and

3. Whether each unit is sub-metered, master-metered, or unmetered;

G. The signature of the rental property owner of the rental unit affirming under penalty of perjury that the information provided in the annual registration is true and correct; and

H. Such other information reasonably requested by the City.

(Ord. No. 13695, § 1, 6-21-2022)