4.02 — Rent Control

The provisions of this chapter shall apply to all residential rental units located within the city renting for less than four hundred fifty dollars per month, except as provided in Section 4.02.030, as of September 1, 1979.

(Ord. 1213 § 2, 1984)

In construing the provisions of Chapters 4.02 and 4.04, the following definitions shall apply:

"Landlord" means any owner, lessor, operator or manager of apartments, condominiums or mobile home parks. The term "landlord" shall also include the owner, lessor or manager of any single-family residence which is occupied by a renter.

"Rent" means the consideration, including any bonus, benefit or gratuity, demanded or received by a landlord for the use and occupancy of a residential rental unit, including services, amenities and security deposits.

"Residential rental unit" means any mobile home space, apartment, condominium or singlefamily residence, or other living quarters, occupied by any person other than the owner for payment of rent pursuant to an oral or written lease, or other form of rental agreement. The term "residential rental unit" shall not include any premises subject to the transient occupancy tax of the city for any period during which such tax is actually collected and paid to the city.

"Tenant" means any person entitled to occupy such apartment, mobile home, condominium or other residential unit pursuant to an oral or written lease with the owner thereof, or pursuant to some other rental agreement with the owner, lessor, operator or manager thereof. (Ord. 1213 § 2, 1984; Ord. 1299 § 1, 1988)

The following rental units shall be exempt from the provisions hereof:

• (1) Units used primarily for commercial purposes;

• (2) Units in buildings, mobilehome parks, or developments of four units or less where one unit is occupied by the owner;

• (3) Units upon which construction began on or after April 1, 1979;

• (4) Units in any hotel, motel, inn, tourist home or boardinghouse which are rented primarily to transient guests and are subject to the transient occupancy tax of the city for any period during which such tax is actually collected and paid to the city;

• (5) Spaces in any recreational vehicle park;

• (6) Units in nonprofit cooperatives when occupied by the shareholder entitled to exclusive possession thereof;

• (7) Units in any hospital, medical care facility, asylum, or nonprofit home for the aged;

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City of Palm Springs, CA

PALM SPRINGS CODE

§ 4.02.030

§ 4.02.050

• (8) Units owned, managed or operated by any government agency;

• (9) Units whose rent is subsidized by any governmental agency, if federal or state law or regulation specifically exempts such units from rent regulation.

• (Ord. 1213 § 2, 1984; Ord. 1299 §§ 2, 3, 4, 1988)

• (a) From September 1, 1979, which shall be deemed to be the effective date of the ordinance codified in this chapter, until such time as this chapter is no longer deemed necessary by the city council and approved by the majority of the voters of the city, no landlord of any residential rental unit covered by this chapter shall request, demand or receive a rent increase in excess of three-fourths of the increase in the cost of living as indicated in the latest available Consumer Price Index (CPI) for the city of Los Angeles. No landlord shall be entitled to more than one such rent increase in any twelve-month period.

• (b) As used herein, the term "Consumer Price Index for the city of Los Angeles" means that portion of the consumer price index published by the United States Department of Labor for the Los Angeles-Anaheim-Riverside Metropolitan area, designated as all urban consumers, all items, 1967 = 100, or, if discontinued, such other consumer price index which, subject to adjustment, most nearly results in a similar consumer price index.

• (c) Computation of rent increases allowable by this chapter shall be according to the following formula:

  • (1) The cumulative allowable percentage rent increase (I), expressed as a decimal figure may be calculated as follows:

I = (A/B — 1) x .75

where A is the latest available consumer price index, and B is the consumer price index for the base rent month (CPA for September, 1979 is 220.7);

• (2) Multiply the cumulative allowable percentage rent increase by the base rent, as determined by Section 4.02.050. The resulting figure (allowable cumulative increase) added to the base rent is the maximum allowable rent;

• (3) Subtract the current rent from the maximum allowable rent. The resulting figure is the maximum current increase in the rent;

• (4) At the landlord's option, for bookkeeping convenience, the rent (base rent plus allowable cumulative increase) may be rounded to the nearest dollar, provided such adjustment is made for all rental units included in any group of rental units.

• (Ord. 1213 § 2, 1984; Ord. 1299 § 5, 1988)

The base rent, for purposes of this chapter, and for computation of allowable rent increases, shall be the monthly rent charged on September 1, 1979, except:

• (1) If the unit was held as of September 1, 1979, under a lease which provided for monthly rental payments of unequal amounts, the monthly rent charged on September 1, 1979, shall be deemed to be the total rent due under such lease divided by the number of months of

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City of Palm Springs, CA

§ 4.02.050

§ 4.02.070

RENT

said lease; and

• (2) If the unit was vacant or not yet completed or otherwise exempt from application of this chapter, as of September 1, 1979, the base rent shall be the monthly rent charged when the unit first became occupied as a rental unit after September 1, 1979, and the base rent month shall be the month when such unit first became occupied.

• (Ord. 1213 § 2, 1984; Ord. 1299 § 6, 1988)

• (a) If the application of this chapter, or any section thereof, would operate to confiscate the owner's property in violation of the Constitution of the United States or the California Constitution, then such act, section or part shall not apply to the owner regarding such property.

• (b) No landlord shall increase any rent pursuant to this section unless and until the owner shall first obtain a judicial declaration or ruling by the rent review commission that such increase in rent is necessary under this section, unless the tenant agrees in writing that such rent increase may become effective without such judicial declaration. No landlord shall evict or threaten to evict a tenant or refuse or threaten to refuse to renew or extend any rental agreement, lease or tenancy of any tenant based solely on the refusal of such tenant to agree to such increase in rent.

• (c) Any landlord who violates this provision shall be liable in a civil action to such tenant or prospective tenant for damages of three hundred dollars per violation and reasonable attorneys' fees. No provision in any lease or rental agreement shall be enforceable in which the tenant agrees in advance to pay any rent increase which the landlord may later deem, without judicial determination, to be required pursuant to this section.

• (Ord. 1213 § 2, 1984)

Any landlord who shall petition or apply to the rent review commission for a hardship adjustment, and who shall be granted any such hardship adjustment as to any one or more residential units, may adjust the rent of such unit or units in an amount not exceeding the amount of the hardship adjustment so granted or approved by the rent review commission, upon giving to the tenant such written notice as is required by law. Service upon a tenant of a copy of the petition or application to the rent review commission for a hardship adjustment of rent shall be deemed to constitute the notice of rent increase referred to in Section 4.02.080; provided, however, that the tenant shall be entitled to at least thirty days' written notice of the actual dollar amount of any rent increase.

(Ord. 1213 § 2, 1984)

• (a) No landlord shall reduce or eliminate any service to any rental unit so long as this chapter is in effect, unless and until a proportionate share of the cost savings resulting from such reduction or elimination is passed on to the tenant in the form of a decrease in rent.

• (b) If a landlord who provides services to a rental unit in the nature of utility services shall reduce or eliminate such service by separate metering or other lawful means of transferring

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City of Palm Springs, CA § 4.02.070

PALM SPRINGS CODE

§ 4.02.075

from the landlord to the tenant the obligation for payment for such services, the cost savings, if any, resulting from such reduction or elimination to be passed on to the tenant in the form of a decrease of rent shall be deemed to be the cost of such transferred utility service for the month of September, 1979. If for any reason the utility bill for such service for the month of September, 1979, is not representative of the normal or usual cost of such utility service at that time, or if either landlord or tenant shall protest the use of the September, 1979, billing as the measure of such cost savings, then the computation of such cost savings shall be based upon the average monthly charge for such service for the period of September, 1978 through August, 1979, inclusive, or such other period as the parties shall mutually agree is representative of such cost savings.

• (c) For purposes of this section, in determining cost savings to be passed on to the tenant in the form of decreased rent, the cost of installation of separate utility meters, or similar or analogous costs to the landlord to shift the obligation for payment of utility costs to the tenant, shall not be considered. Nothing stated herein shall be construed to prohibit or prevent the consideration or inclusion of such costs, together with other operational costs of a landlord, in any proceeding before the rent review commission.

• (Ord. 1213 § 2, 1984)

• (a) Except as otherwise provided herein, and notwithstanding any other provision of this Chapter 4.08 to the contrary, in the event any tenancy in any residential rental unit, excluding any tenancy in any mobile home space as defined in Civil Code § 798.12, is terminated as the result of consensual action of a landlord and tenant, or as the result of a lawful involuntary eviction or termination by a landlord, the maximum allowable rent for any such residential rental unit, excluding any mobile home space, may be adjusted without regard to the provisions of this chapter, and such residential rental units shall no longer be subject to the provisions of Chapters 4.02 or 4.04.

• (b) The foregoing subsection (a) providing for vacancy decontrol shall not apply, and there shall be no decontrol of rents upon the termination of any tenancy in any residential rental unit, excluding any tenancy in any mobile home space as defined in Civil Code § 798.12, in any of the following circumstances:

  • (1) The termination of any tenancy with respect to any residential rental unit, excluding any tenancy in any mobile home space as defined in Civil Code § 798.12, as the result of the termination of any rental assistance paid to any tenant pursuant to any federal or state program of rental assistance;

  • (2) The termination of any tenancy with respect to any residential rental unit, excluding any tenancy in any mobile home space as defined in Civil Code § 798.12, by a landlord on any ground other than (i) a default in the payment of rent on the part of the tenant, (ii) a breach of any provision of any lease or rental agreement by the tenant, (iii) a nuisance committed by or permitted to exist by any tenant, (iv) where a residential rental unit is utilized by or permitted to be utilized by the tenant for any illegal purpose including, but not limited to, the purchase and sale of controlled substances, or acts or prostitution, or (v) where the landlord in good faith seeks to recover possession of the residential rental unit to be occupied by the landlord, or the children, parents, siblings, grandparents, father-in-law, mother-in-law, son-in-law, or daughter-in-law of such landlord for residential purposes.

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City of Palm Springs, CA

§ 4.02.075

§ 4.02.085

RENT

• (3) The termination of any tenancy with respect to any residential rental unit, excluding any tenancy in any mobile home space as defined in Civil Code § 798.12, where the landlord has engaged in a course of conduct resulting in an unreasonable interference with the tenant's comfort, safety, or enjoyment of such residential rental unit.

(Measure KK § 2, 1994)

• (a) A notice of rent increase allowable by this chapter may be served at any time. Any such increase shall become effective not less than ninety days after service of notice by the landlord on the tenant. All notices of rent increase shall be served in the manner described by law.

• (b) If any notice required by this chapter is not served on the tenant, the tenant shall not be required to pay any increase in rent until ninety days after such notice is served.

• (c) If any notice of rent increase, served pursuant to subsection (a) of this section, does not state the actual dollar amount of such rent increase, a supplemental or additional notice which does state the actual dollar amount of such rent increase shall be served upon the tenant, in the manner prescribed by law, not less than thirty days prior to the effective date of such rent increase.

• (Ord. 1213 § 2, 1984; Ord. 1299 § 7, 1988)

• (a) Landlords shall register each rental unit subject to the provisions of this chapter with the rent review commission.

• (b) On or after June 1, 1984, no landlord shall increase rent for any rental unit subject to the provisions of this chapter without first:

  • (1) Having registered said unit at least thirty days earlier with the rent review commission; and

  • (2) Notifying the tenant or the prospective tenant in writing of the base rent of said unit, and the present rent of said unit, and the date of the last previous rent increase; and

  • (3) Paying to the rent review commission the initial registration fee as provided in subsection (c) of this section.

• (c) The landlord shall pay for each rental unit subject to the provisions of this chapter an initial registration fee according to the following schedule:

==> picture [401 x 98] intentionally omitted <==

----- Start of picture text -----
Number of Units Per-Unit Fee
1—25 $10.50
26—100 10.80
101—250 11.00
250+ 11.50
----- End of picture text -----

• (d) The city council may, from time to time by resolution, require a renewal registration of

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City of Palm Springs, CA § 4.02.085

PALM SPRINGS CODE

§ 4.02.100

each rental unit subject to the provisions of this chapter. The resolution may set a renewal registration fee, set a surcharge on the rent of each unit subject to the renewal registration, and provide appropriate penalties for failure to so register such rental units. (Ord. 1299 § 8, 1988)

• (a) If the landlord demands, accepts, receives or retains any rent payment in excess of the amounts permitted by this chapter, the tenant may recover said sum from the landlord as actual damages, together with a civil penalty of three hundred dollars per violation, and reasonable attorneys' fees as determined by a court of competent jurisdiction.

• (b) In any action for recovery of rent, or for unlawful detainer based on nonpayment of rent, the tenant may defend such action on the ground that the amount of rent claimed is in excess of the rent allowed by this chapter.

• (c) The city may bring an action for injunctive relief to prevent or remedy any violation of this chapter.

• (d) In any action involving the validity of any proposed or actual rent increase, the landlord shall have the burden of proving all facts sustaining the rent increase.

• (e) Nothing in this section is intended to limit or preclude any other lawful defense, cause of action, or claim of the landlord or tenant.

• (f) The failure on the part of any landlord to comply with the provisions of Section 4.02.075(a) or the actions of any landlord in violation of Section 4.02.075(b) of Chapter 4.02 shall be a defense in any action or legal proceeding to recover possession of a residential rental unit otherwise subject to the provisions of this chapter.

• (g) In any action or other legal proceeding to recover possession of a residential rental unit otherwise subject to the provisions of Chapter 4.02, a landlord shall allege in the complaint for possession substantial compliance with the provisions of Section 4.02.075(a) and shall further allege that the landlord has not violated any of the provisions specified in Section 4.02.075(b). Failure of the landlord to comply with this subsection shall be an additional defense to any action or other legal proceeding for possession of a residential rental unit otherwise subject to the provisions of this Chapter 4.02.

• (Ord. 1213 § 2, 1984; measure KK § 2(d), 1994)

• (a) No landlord shall in any way retaliate against any tenant for the tenant's assertion of, or exercise of any right under this chapter. Such retaliation shall be subject to suit for actual and punitive damages, injunctive relief, and attorneys' fees. Such retaliation shall also be an available defense in an unlawful detainer action.

• (b) In any action in which such retaliation is an issue, the burden shall be on the landlord to prove that the dominant motive for the act alleged to be in retaliation was in fact other than retaliatory.

• (Ord. 1213 § 2, 1984)

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City of Palm Springs, CA

§ 4.04.010

§ 4.04.030

RENT