Chapter 1 — RENT STABILIZATION

This chapter shall be known as the "Rent Stabilization Ordinance" of the City of Ojai. (§ 1, Ord. 937, eff. April 27, 2023)

The City Council of the City of Ojai finds:

• (a) Rents throughout the Ventura County region continue to rise as market pressures, such as increasing real estate costs, lead to a decrease of the affordability and stability of the housing stock. As a result, it is increasingly difficult for tenants to find adequate, safe, and habitable housing at reasonable rents.

• (b) The purposes of this chapter are to promote long-term stability and certainty for tenants in the rental market while providing landlords an ability to receive a fair and reasonable return with respect to the operation of their property. This chapter regulates rents and requires landlords to register rental property, establishes an administrative hearing process, and provides for procedures and guidelines for the implementation of this chapter.

• (c) The City Council hereby finds that a comprehensive rent stabilization ordinance is required to protect tenants from unreasonable and excessive rents, to protect tenants from involuntary displacement, to keep rents within the City at a moderate level and at the same time to ensure a just and reasonable return to landlords.

• (§ 1, Ord. 937, eff. April 27, 2023)

Code. The Ojai Municipal Code.

Director. The Community Development Director of the City of Ojai, or his or her designee.

Dwelling Unit. Any dwelling unit as defined in California Civil Code Section1940(c), including joint living and work quarters, located within the jurisdictional boundaries of the City of Ojai and used for human habitation in consideration of payment of rent, whether or not such use is legally permitted.

Eviction. Any action to terminate a tenancy, lease or rental agreement, including, but not limited to, the following: serving any notice attempting to terminate any tenancy, lease or rental agreement, threatening to terminate any tenancy, lease or rental agreement, demanding possession of a rental unit, or serving any notice to quit or vacate or any other eviction notice. Termination of tenancy shall have the same meaning.

Landlord. An owner, 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 representative, agent, or successor of such owner, lessor, or sublessor.

Rent or Rents. 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, including, but not limited to, all payment and consideration demanded or paid for parking, pets, furniture, and

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City of Ojai, CA

RENT STABILIZATION—JUST CAUSE

§ 11-1.03

§ 11-1.06

subletting

Rental Unit. Any rental unit that is not exempt from the City's rent stabilization provisions under Section 11-1.08.

Tenancy. The legal right of a tenant to the use or occupancy of the rental unit.

Tenant. A person entitled, by a rental agreement, or by sufferance, or by this Code or State or Federal law, to the use or occupancy of any rental unit. (§ 1, Ord. 937, eff. April 27, 2023)

Increases in rent for any rental unit in the City in excess of 4%, and more than one rent increase in any 12 month period, are prohibited, unless expressly exempt under this Code, the CostaHawkins Rental Housing Act codified in California Civil Code Section 1954.50, et seq., or any other applicable law.

(§ 1, Ord. 937, eff. April 27, 2023)

This chapter allows for an annual adjustment of rent for any rental unit of up to 4%. The City finds such an increase provides 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, however, any landlord who contends that the limit on rental increases set forth in this chapter above will prevent a landlord from receiving a fair and reasonable return on their property may petition for relief from the cap set forth in Section 11-1.04 under the procedures set forth in Section 11-1.06 and under applicable law. (§ 1, Ord. 937, eff. April 27, 2023)

• (a) If a landlord desires to increase the rent for a rental unit in an amount greater than allowed in Section 11-1.04, and the landlord contends that the limitations on rent increases in Section 11-1.05 will prevent the landlord from receiving a fair and reasonable return with respect to the operation of the property containing the rental unit, the landlord may file a rent adjustment application with the Community Development Department to request an increase in rent beyond the amount permitted under Section 11-1.04.

• (b) The landlord shall mail a copy of the rent adjustment application by first class mail, postage prepaid, to all tenants whose rents are the subject of the application within five calendar days after the date the application is filed with the Community Development Department. Within 10 calendar days after the date the petition is filed, the landlord shall file a proof of service signed under penalty of perjury stating that a copy of the petition was mailed to all such tenants.

• (c) The tenant(s) will then have 30 days from the date of receiving the rent adjustment application to reply or provide additional materials to the City in response to the application.

• (d) The landlord shall be responsible for all costs associated with the City's review of the rent

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City of Ojai, CA § 11-1.06

OJAI CODE

§ 11-1.06

adjustment application. Upon receipt of a rent adjustment application, the Community Development Department 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 Director so determines, the Director shall also determine the anticipated costs of employing such expert(s). The resulting figure shall be communicated to the landlord, and the rent adjustment application 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 rent adjustment application. 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 owner receives the determination on the rent adjustment application from the City.

• (e) It shall be a rebuttable presumption that the annual net operating income earned by a landlord on the date the ordinance adopting this chapter took effect and rent increases allowed under Sections 11-1.04 and 11-1.05, provide the landlord with a fair and reasonable return with respect to the operation of their property. A landlord shall have the burden to prove that the additional rent increase is necessary to earn a fair and reasonable return with respect to the operation of their property.

• (f) The factors the Community Development Director may consider in deciding a fair return petition include, but are not limited to:

• (1) Changes in the Consumer Price Index for All Urban Consumers in the OxnardThousand Oaks-Ventura Metropolitan Area published by the Bureau of Labor Statistics;

  • (2) The length of time since the last determination by the Community Development Director on a rent increase application, or the last rent increase if no previous rent increase application has been made;

  • (3) The completion of any capital improvements or rehabilitation work related to the rental unit specified in the rent adjustment application, and the cost thereof, including materials, labor, construction interest, permit fees, and other items the City Manager deems appropriate;

  • (4) Changes in property taxes or other taxes related to the rental unit;

  • (5) Changes in the rent paid by the landlord for the lease of the residential real property or land on which the rental unit is located;

  • (6) Changes in the utility charges for the rental unit paid by the landlord, and the extent, if any, of reimbursement from the tenants;

  • (7) Changes in reasonable operating and maintenance expenses;

  • (8) The need for repairs caused by circumstances other than ordinary wear and tear;

  • (9) The amount and quality of services provided by the landlord to the affected tenant(s).

• (g) The Community Development Director shall hold a noticed public hearing within 60 days of the date the application is deemed complete, including proof of service of the rent adjustment application on the applicable tenant(s), to consider the rent adjustment application and any information submitted by any person, including any information

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City of Ojai, CA

RENT STABILIZATION—JUST CAUSE

§ 11-1.06

§ 11-1.08

submitted by the landlord or affected tenants. A rent adjustment application shall be decided by the Community Development Director within 60 calendar days of the public hearing. The decision shall be emailed and sent by mail, with proof of mailing to the subject property landlord, the landlord's designated representative(s) for the rent adjustment application, the applicable tenant(s), and the designated representative of the tenant(s), if any.

• (h) The decision of the Community Development Department may be appealed to the Planning Commission pursuant to Section 11-1.16.

• (i) All rent adjustments approved by the Community Development Director pursuant to this section may be imposed by the landlord only after the landlord has provided written notice to the tenant of the rent increase for the rental unit in accordance with California Civil Code Section 827 and other applicable law.

• (§ 1, Ord. 937, eff. April 27, 2023)

• (a) If a tenant contends that a proposed or actual rent increase is not in compliance with this chapter or that there has been a reduction in housing services, the tenant may file a petition with the Community Development Director. The tenant shall mail a copy of the petition by first class mail, postage prepaid, to the landlord within five calendar days after the date the petition is filed. Within 10 calendar days after the date the petition is filed, the tenant shall file a proof of service signed under penalty of perjury stating that a copy of the petition was mailed to the Landlord. The petition shall include a statement indicating the basis on which the tenant contends that a proposed or actual rent increase or a proposed or actual reduction in housing services is in violation of this chapter, together with any evidence that the tenant wants the Director to consider.

• (b) The tenant shall bear the burden of proving by a preponderance of the evidence at the hearing that the rent increase or reduction in housing services is not in compliance with this chapter.

• (c) Tenant petitions for noncompliance will be considered and determined by the Director; and the Director's decision may be appealed to the Planning Commission, in accordance with the procedures set forth in Section 11-1.16.

• (§ 1, Ord. 937, eff. April 27, 2023)

• (a) This chapter shall not apply to any dwelling units expressly exempt from rent stabilization ordinances under any applicable provision of State or Federal law, including any unit exempted under the Costa-Hawkins Rental Housing Act, Civil Code Section 1954.50, et seq.

• (b) Under the Costa-Hawkins Rental Housing Act, this chapter shall not apply to any dwelling unit that has a certificate of occupancy or equivalent permit for residential occupancy issued after February 1, 1995. For this purpose, certificate of occupancy is the certificate first issued before the property is used for any residential purpose.

• (c) This chapter shall not apply to any dwelling unit that is alienable separate from the title to any other dwelling unit or is a subdivided interest in a subdivision, as specified in

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City of Ojai, CA

OJAI CODE

§ 11-1.08

§ 11-1.10

California Business and Professions Code Section 11004.5(b), (d) and (f), subject to the provisions of Civil Code Section 1954.52.

• (d) Any dwelling unit for which the landlord receives Federal, State, or local housing subsidies, including, but not limited to, Federal Housing Assistance Vouchers issued under Section 8 of the United States Housing Act of 1937 line 9 (42 U.S.C. Section 1437f).

• (e) This chapter shall not apply to any dwelling unit for which rental rates are separately governed by deed restriction or contract with the City or another government or non-profit entity, such as any affordable units required under a development agreement.

• (f) This chapter shall not apply to any dwelling unit for which rental rates are separately regulated by applicable law, such as density bonus affordable units for which rental rates are governed by Government Code Section 65915, et seq., and applicable City law.

• (§ 1, Ord. 937, eff. April 27, 2023)

No rent increase shall be effective if the landlord:

• (a) Fails to substantially comply with all provisions of this chapter, including, but not limited to, the failure to provide notices as required; or

• (b) Fails to maintain the rental unit in compliance with California Civil Code Section 1941.1 et seq. and California Health and Safety Code Sections17920.3 and 17920.10; or

• (c) Fails to make all repairs as ordered by the City or any final non-appealable order or any court of competent jurisdiction.

• (§ 1, Ord. 937, eff. April 27, 2023)

• (a) A landlord of any rental unit subject to this chapter shall, on or before the date of commencement of a tenancy, give the tenant a written notice in a form prescribed by the City which must include the following information:

  • (1) The existence and scope of this chapter of the City Code; and

  • (2) The tenant's right to respond to any application of rent increase greater than 4% filed with the City by the landlord pursuant to Section 11-1.06.

• (b) As part of any notice to increase rent, a landlord must include:

  • (1) Notice of the existence of this chapter of the City Code; and

  • (2) The tenant's right to respond to any rent adjustment application filed with the City by the landlord pursuant to Section 11-1.06, unless such rent increase is pursuant to an approved rent adjustment application.

No rent increase shall take effect until the requirements of this chapter have been met.

• (c) When the landlord and tenant have entered into a written lease, the landlord must give notices to the tenant in the language used in the lease. When the landlord and tenant have not entered into a written lease, the landlord must give notices to the tenant in the language

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City of Ojai, CA

RENT STABILIZATION—JUST CAUSE

§ 11-1.10

§ 11-1.13

that the landlord and tenant used to negotiate the terms of the tenancy. (§ 1, Ord. 937, eff. April 27, 2023)

• (a) It is unlawful for any person to violate or fail to comply with any provision of this chapter. The violation of any provision of this chapter shall first be punished through the use of a civil citation, prior to prosecution as a misdemeanor, infraction, or civil injunction as provided in City Code Title 1, Chapter 6, Article 1 (Administrative Citations).

• (b) Any landlord who intentionally demands, accepts or retains any payment in violation of the provisions of this chapter shall be liable in a civil action to the tenant from whom such payment is demanded, accepted, or retained for damages in the sum of three times the amount by which the payment demanded, accepted, or retained exceeds the maximum amount which could be lawfully demanded, accepted, or retained together with reasonable attorneys' fees and costs as determined by the court.

• (c) The City Attorney is authorized to bring a civil action and/or proceeding for violation of this chapter, or any guideline or rule promulgated pursuant to Section 11-1.14 of this chapter, for civil penalties, injunctive, declaratory and other equitable relief, restitution and reasonable attorneys' fees and costs and may take such other steps as necessary to enforce this chapter.

• (d) Criminal penalty. Any person lawfully convicted of violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, which shall be punishable as provided in Section 1-2.02 of this Code and other applicable law.

• (e) Separate violation. Each separate day, or any portion thereof, during which any violation of this chapter occurs or continues, constitutes a separate violation.

• (f) Remedies cumulative.

  • (1) The remedies, violations, and penalties set forth in this chapter are cumulative and in addition to all other remedies, violations, and penalties set forth in this Code, or in any other City, County, State or Federal ordinance, laws, rules or regulations.

  • (2) The City's decision to pursue or not pursue enforcement of any kind shall not affect a tenant's rights to pursue civil remedies in accordance with Section 11-1.12 of this chapter.

• (§ 1, Ord. 937, eff. April 27, 2023)

Any tenant aggrieved by a violation of this chapter may bring a civil suit in an appropriate State or Federal court to enforce this chapter. Before commencing a civil suit to enforce this chapter, the tenant shall provide at least 30 days' notice and a demand that the person or company alleged to have committed a violation of this chapter correct, repair, replace, or otherwise rectify the alleged violations under this chapter. A landlord found to be in violation of this chapter shall be liable to the aggrieved tenant for damages and for tenant's attorneys' fees and costs. Tenants are not required to exhaust their administrative remedies under this chapter prior to filing suit pursuant to this section.

(§ 1, Ord. 937, eff. April 27, 2023)

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City of Ojai, CA

OJAI CODE

§ 11-1.13

§ 11-1.16

Any waiver of rights under this chapter shall be void as contrary to public policy. (§ 1, Ord. 937, eff. April 27, 2023)

The City Manager may adopt administrative procedures and regulations to implement the provisions of this chapter. The Director is also authorized to administer and enforce this chapter, which may include promulgating guidelines, procedures, and rules consistent with the provisions of this chapter. These guidelines shall have the force and effect of law and may be relied upon by parties to determine their rights and responsibilities under this chapter. In administering and enforcing this chapter, the Director may also issue subpoenas pursuant to California Government Code Section 53060.4 and may report noncompliance therewith to the judge of the Superior Court.

(§ 1, Ord. 937, eff. April 27, 2023)

Landlords subject to this chapter shall pay a rent stabilization ordinance implementation fee, and any related registration, appeal, or application fees as may be established by City Council resolution. The rent stabilization program fee is to fund the City's costs to implement and enforce the provisions of this chapter.

(§ 1, Ord. 937, eff. April 27, 2023)

• (a) A landlord or an affected tenant who wishes to contest the Director's decision on a rent adjustment application, or a landlord or tenant who wishes to contest the Director's decision on a tenant petition for non-compliance, or a landlord or tenant who wishes to contest any other Director's decision under this chapter may file a request for appeal of the Director's decision, which will be heard in accordance with the procedures set forth in this section.

  • (1) Appeals shall be submitted in writing on a request for appeal form and filed with the Community Development Director within 15 calendar days after the decision date identified in the notice of decision. If the filing deadline falls on a weekend, holiday, or other day when City Hall is officially closed, the filing deadline will extend to the following City Hall business day.

  • (2) The request for appeal shall specifically state the pertinent facts and the basis for the appeal. A landlord who contends the requirements of this chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property must pursue that claim via an appeal to the Director.

  • (3) A landlord who files a request for appeal shall do the following:

    • (i) Mail a copy of the request for appeal by first class mail, postage prepaid, to all tenants who would be subject to a rent increase, or the tenant who filed the petition for noncompliance, as applicable, within five calendar days after the date the request for appeal is filed with the Community Development Director.

    • (ii) Within 10 calendar days after the date the request for appeal is filed with the

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City of Ojai, CA

RENT STABILIZATION—JUST CAUSE

§ 11-1.16

§ 11-1.16

Director, the landlord shall file a proof of service signed under penalty of perjury stating that a copy of the request for appeal was mailed to all such tenants.

• (4) A tenant who files a request for appeal shall do the following:

  • (i) Mail a copy of the request for appeal by first class mail, postage prepaid, to the landlord or landlord's agent within five calendar days after the date the request for appeal is filed with the Director.

  • (ii) Within 10 calendar days after the date the request for appeal is filed with the Director, the tenant shall file a proof of service signed under penalty of perjury stating that a copy of the request for appeal was mailed to the landlord or landlord's agent.

• (5) The request for appeal shall include:

  • (i) A general statement, specifying the basis for the appeal and the specific aspect of the decision being appealed, and shall be based upon an error in fact or dispute of findings.

  • (ii) Supporting evidence substantiating the basis for the appeal.

  • (iii) Any other documentation or information the appealing party wants the Planning Commission to consider.

• (b) Hearing procedure.

• (1) A hearing on a request for appeal will be scheduled before the Planning Commission for a date no sooner than 15 days and no later than 60 days after receipt of the request for appeal and proof of service in compliance with the requirements this section, unless the Planning Commission determines that good cause exists for an extension of time.

  • (2) Upon setting the hearing date, the Planning Commission shall send written notice to the appealing party of the date, time and place set for the hearing.

  • (3) If the landlord is the appealing party, upon receipt of the notice setting the date, time and place of the hearing, the landlord shall, in the case of a request for appeal of a rent adjustment application, post such notice in a conspicuous place at the affected property including the rental units that are the subject of the appeal. Such notice shall be placed on a written instrument that is at least 11 inches in width and 17 inches in length, and shall be placed not less than four feet above ground level in the common area, at the entry or entries to the building or units, or other similar location or locations as necessary to provide tenants a reasonable opportunity to view the notice and be advised of the hearing. Within five calendar days of receipt of the notice of hearing, the landlord shall personally deliver a copy of the notice to each tenant in the affected rental units. In the case of landlord's request for appeal of a tenant petition for noncompliance, the Planning Commission shall send a copy of the notice setting the date, time and place of the hearing to the tenant concurrently with sending the notice to the landlord.

  • (4) If the tenant is the appealing party, the Planning Commission shall send a copy of the notice setting the date, time and place of the hearing to the landlord concurrently with

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City of Ojai, CA § 11-1.16

OJAI CODE

§ 11-1.16

sending the notice to the tenant.

• (5) At the hearing, the appealing party shall be given the opportunity to testify, call witnesses and to present evidence concerning the appeal. The Planning Commission may also hear testimony and consider written evidence offered by the tenants in the affected rental units and, if a tenant is the appealing party, hear testimony and consider written evidence offered by the landlord.

• (6) The Planning Commission may continue the hearing and request additional information from the landlord, affected tenants, or petitioning tenant, as applicable, prior to issuing a written decision.

• (7) All hearings conducted by the Planning Commission shall be open to the public.

• (c) Hearing continuance. The Planning Commission may grant a continuance of the hearing date upon a request and a showing of good cause. The request must be made in writing and be received by the Planning Commission at least five business days prior to the hearing date. If the landlord is the party requesting an extension, the landlord must personally deliver a copy of the request to the affected tenant(s). In no event shall the continuance be longer than 15 calendar days from the originally scheduled hearing date.

• (d) Planning Commission decision. After considering all of the testimony and evidence submitted at the hearing, within 20 calendar days after the conclusion of the hearing, the Planning Commission shall issue a written decision denying, affirming or modifying the Director's decision and shall adopt written findings in support of that decision. The written decision shall be served by first-class mail, postage prepaid on the appealing party. If the landlord is the appealing party and the appeal concerned a rent adjustment application, the landlord shall post such notice in a conspicuous place at the property containing the affected rental units and within five calendar days of receipt of the written decision, the landlord shall personally deliver a copy of the written decision to each tenant in the affected rental units. If a tenant is the appealing party or if the landlord is the appealing party and the appeal concerned a tenant petition for noncompliance, the Planning Commission shall serve a copy of the written decision on the landlord and the tenant concurrently.

• (e) Judicial review of Planning Commission decision. Any person directly aggrieved by a Planning Commission decision pertaining to a request for appeal of a Director's decision on a rent adjustment application, may seek judicial review in the Superior Court pursuant to California Government Code Section 53069.4 and/or California Code of Civil Procedure Sections 1094.5 and 1094.6.

• (§ 1, Ord. 937, eff. April 27, 2023)

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City of Ojai, CA

RENT STABILIZATION—JUST CAUSE

§ 11-2.01

§ 11-2.04