Vallejo Municipal Code Ch. 7.300 Prohibition of Price Gouging

A. The city of Vallejo is currently experiencing a severe affordable housing shortage resulting in part by multiple fast moving wildfires in 2017 and 2018, which ravaged Northern California's wine country and which burned thousands of homes and other structures across hundreds of thousands of acres. As many as two hundred and fifty wildfires burned in Northern California during this period, with twenty-one becoming major fires throughout Napa, Lake, Sonoma, Mendocino, Butte and Solano Counties.

B. The 2017 Tubbs fire, which started in Sonoma County then spread to the city of Santa Rosa, resulted in the mandatory evacuation of the city of Santa Rosa after the Santa Rosa city manager declared the fire to be a local emergency. This fire destroyed several neighborhoods, burning an estimated twenty-seven thousand acres to the ground.

C. The 2017 Atlas fire, which burned just outside the city of Napa, is estimated to have destroyed twenty-five thousand acres. This fire depleted the area's housing stock and sent displaced residents in search of housing to the adjacent city of Vallejo.

D. The numerous wildfires near the city of Vallejo destroyed over eight thousand structures, displaced thousands of people, and created extraordinary amounts of fire debris. In response to these wildfires and the resulting economic impacts, Governor Brown issued a state of emergency in Napa County and Sonoma County on October 9, 2017, and a state of emergency on October 10, 2017 in Solano County. Thereafter, on October 18, 2017, Governor Brown issued Executive Order B-43-17, which activated the price gouging prohibitions of California Penal Code Section 396 for the affected counties, including Solano County, and waived the thirty-day limitation set forth in the statute. On April 16, 2018, Governor Brown issued Executive Order B-51-18, which extended to December 4, 2018, the price gouging prohibitions contained in his original Executive Order, including the ten percent rent increase limitations for several counties, including Solano County. Executive Order B-51-18 expired in December 2018, and was not extended, thereby aggravating the housing crisis in the city of Vallejo.

E. In June of 2019, up to six hundred low-income, elderly, disabled and otherwise vulnerable city of Vallejo residents, many of whom are members of protected classes, faced imminent displacement and homelessness due to price-gouging rent increases, which included notices that doubled existing monthly rental amounts. Upon learning of the imminent homelessness of hundreds of residents as a result of these price gouging actions, along with an absence of available comparable housing in the city of Vallejo, on June 27, 2019, the city manager, acting as the director of emergency services for the city of Vallejo, executed a proclamation of emergency declaring a housing crisis in the city of Vallejo pursuant to Vallejo Municipal Code Section 2.50.060. On July 3, 2019, within seven days thereafter, the city council of the city of Vallejo confirmed and ratified the proclamation.

F. California Penal Code Section 396 controls price increases for rental housing, goods and services related to emergency response and recovery for an initial period of thirty days after a declaration of an emergency by the President, Governor or local agency and generally prohibits charging a price that exceeds by more than ten percent of the price of the rental units, goods or services as such existed before the declaration of an emergency event. Penal Code Section 396 permits a local legislative body to extend the price controls for additional thirty day periods as needed to protect the lives, property or welfare of its citizens. Nothing in Penal Code Section 396 preempts a city's ability to adopt an ordinance that prohibits the same or similar conduct and allows a city to impose a more severe penalty for the conduct prohibited by Penal Code Section 396. Penal Code Section 396 applies to hotels, motels and any other rental housing with an initial lease term of no longer than one year.

G. The city council has previously found that the city of Vallejo is experiencing a housing crisis, and a severe lack of rental housing, particularly rental housing that is affordable to lower and moderate-income residents of the city. Housing units damaged and destroyed by wildfires in adjacent counties have increased the demand for rental housing in the city of Vallejo, exacerbated the existing housing shortage in the city of Vallejo, and further impaired the ability of persons who live and work in the city of Vallejo and persons who have been displaced by the wildfires in neighboring areas to find housing in the city of Vallejo. City officials have been alerted about price gouging by persons offering housing for rent in the city of Vallejo and have been informed that price gouging may also include eviction of existing tenants of rental properties, so landlords may contract out their rental properties to higher-earning medical professionals who work at nearby medical centers and can afford to pay rental rates in excess of the amounts that previously were charged to existing tenants. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency or local emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential consumer goods and services be prohibited. The catastrophic loss of housing caused by the wildfires in Northern California, including the Atlas and Tubbs fires, have exacerbated the housing shortage in the city of Vallejo and have created the need for the city of Vallejo to establish local regulations precluding price gouging for rental units during times of emergencies to protect residents from excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency because access to rental housing in the city of Vallejo is vital and necessary for the health, safety, and welfare of its residents and others seeking housing due to the loss of their homes as a result of the wildfires.

H. Sections 200, 310, 311 and 312 of the Vallejo city Charter authorize the adoption of an emergency measure, referred to as an emergency ordinance, to preserve the public peace, health or safety, if such emergency measure contains a statement of the reasons for such urgency and requires at least five affirmative votes of the city council for adoption. The ordinance must be read in full, unless copies are made available to the public before or during the meeting. The procedures and processes set forth in the city's Charter have been followed, and the city council has been provided with information upon which the findings and actions set forth in this ordinance are based, allowing the city council to adopt this emergency ordinance to be effective immediately upon adoption. The city council hereby finds that this ordinance is necessary for the immediate preservation of the public peace, health and safety based upon the findings contained herein.

(Ord. No. 1816 N.C.(2d), § 1, 7-16-2019)

A. Rental Housing. It is unlawful for any person, business or other entity during the emergency declaration period to increase the rental price, as defined in Section 7.300.040, advertised, offered, or charged for housing, to an existing or prospective tenant, by more than ten percent. However, a greater rental price increase is not unlawful if that person can prove that the increase is directly attributable to additional costs for repairs or additions beyond normal maintenance that were amortized over the rental term that caused the rent to be increased greater than ten percent or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration.

B. Transient Housing. It is unlawful for any person, business or other entity during the emergency declaration period to rent or lease a hotel or motel room, or other short-term or long-term rental unit, in the city of Vallejo, for more than ten percent above the hotel, motel or other short-term or long-term rental's regular rates, as advertised immediately prior to the occurrence of a declared emergency, unless that person, business or other entity can prove that the increase in price is directly attributable to additional costs imposed on it for goods or labor used in the business, to seasonal adjustments in rates that are regularly scheduled, or to previously contracted rates.

(Ord. No. 1816 N.C.(2d), § 1, 7-16-2019)

It is unlawful for any person, business, or other entity to evict any residential tenant of residential housing after the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by the city council or other city official vested with authority to make that declaration, and for a period of thirty days following that proclamation or declaration, or any period that the proclamation or declaration is extended by the applicable authority, to rent or offer to rent to another person at a rental price greater than the evicted tenant could be charged under this section. It shall not be a violation of this subdivision for a person, business, or other entity to evict a tenant pursuant to Section 1161 of the California Code of Civil Procedure or to continue an eviction process that was lawfully begun prior to the proclamation or declaration of emergency.

(Ord. No. 1816 N.C.(2d), § 1, 7-16-2019)

The following words or phrases, whenever used in this chapter, shall have the following definitions:

1. "Declared Emergency" means a state of emergency or local emergency.

2. "Emergency Declaration Period" means the longer of the period of time stated in the declaration of a state of emergency, or the declaration of a local emergency or such other period of time established by the city council by ordinance.

3. "Housing" means any rental housing with an initial lease term of no longer than one year, including, but not limited to, a space rented in a mobile home park or campground.

4. "Local Emergency" means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, or other natural or manmade disaster for which a local emergency has been declared by the city council or city official vested with such authority to make such declaration.

5. "Rental Price" for housing means any of the following:

A. For housing rented within one year prior to the time of the proclamation or declaration of emergency, the actual rental price paid by the tenant. For housing not rented at the time of the declaration or proclamation, but rented, or offered for rent, within one year prior to the proclamation or declaration of emergency, the most recent Rental Price offered before the proclamation or declaration of emergency. For housing rented at the time of the proclamation or declaration of emergency but which becomes vacant while the proclamation or declaration of emergency remains in effect, the actual rental price paid by the previous tenant or the amount specified in subparagraph B. of this definition, whichever is greater. This amount may be increased by five percent if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.

B. For housing not rented and not offered for rent within one year prior to the proclamation or declaration of emergency, one hundred and sixty percent of the fair market rent established by the United States Department of Housing and Urban Development. This amount may be increased by five percent if the housing is offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including, but not limited to, gardening or utilities currently or formerly provided in connection with the lease.

C. Housing advertised, offered, or charged, at a daily rate at the time of the declaration or proclamation of emergency, shall be subject to the rental price described in subparagraph A. of this definition, if the housing continues to be advertised, offered, or charged, at a daily rate. Housing advertised, offered, or charged, on a daily basis at the time of the declaration or proclamation of emergency, shall be subject to the rental price in subparagraph B. of this definition, if the housing is advertised, offered, or charged, on a periodic lease agreement after the declaration or proclamation of emergency.

D. For mobile home spaces rented to existing tenants at the time of the proclamation or declaration of emergency, which spaces are subject to Chapter 5.64 (Mobile Home Parks Rent Control) of Title 5 (Business Licenses and Regulations) of the Vallejo Municipal Code, the amount authorized under that chapter. For new tenants who enter into a rental agreement for a mobile home space that is subject to rent control pursuant to Chapter 5.64, but not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for a space in the same mobile home park. For mobile home spaces not subject to Chapter 5.64 and not rented at the time of the proclamation or declaration of emergency, the amount of rent last charged for the space.

6. "State of Emergency" means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor.

(Ord. No. 1816 N.C.(2d), § 1, 7-16-2019)

This ordinance is retroactive to June 27, 2019, and any increases in Rental Price that have been imposed on or after that date shall be in conformance with this ordinance. This ordinance also shall apply retroactively to any increase in rental price for which notice was sent by the landlord or the landlord's agent to a tenant but such increase has not yet become effective. Any increase in rental price that does not conform to this ordinance shall be rolled back to the rental price that was in effect and being charged to a tenant on or before June 27, 2019.

(Ord. No. 1816 N.C.(2d), § 1, 7-16-2019)

TITLE 7

1. For statutory provisions concerning dog catcher, see Agric. Code § 31106. For provisions relating to right of entry for inspections, see Chapter 1.08 of this code.

2. For statutory provisions regarding impounding of dogs, see Agric. Code § 31101.

3. For statutory provisions regarding dog license fees, see Gov. Code § 38792 and Agric. Code §§ 30501 and 30502.

4. For statutory provisions regarding state rabies control, see Health and Saf. Code § 1900 et seq.

5. For statutory provisions authorizing cities to contract for garbage and refuse disposal and to prescribe terms and conditions by resolution or ordinance for such service, see Health and Saf. Code § 4250.

6. EDITOR'S NOTE: Ordinance 640 N.C. is of a special nature and is not codified in this code.

7. For statutory provisions regarding abatement of hazardous weeds, see Health and Saf. Code § 14875 et seq.; for additional provisions regarding weed and rubbish abatement by municipalities, see Gov. Code § 39501 et seq.; for alternative procedures regarding municipal weed and rubbish abatement, see Gov. Code § 39560 et seq.

8. For statutory provisions regarding local ordinances dealing with removal of abandoned vehicles from highways, see Veh. Code § 22660; for provisions regarding removal of vehicles in general, see Veh. Code § 22650 et seq.

9. For statutory provisions regarding gambling, see Penal code § 330 et seq.

10. Former Chapter 7.80, previously codified herein and containing portions of Ordinance Nos. 34 N.C. (2d), 300 N.C. (2d) and 1411 N.C. (2d) was repealed in its entirety by Ordinance No. 1594 N.C. (2d).

11. For constitutional provisions authorizing cities to make and enforce all local, police and other ordinances not in conflict with general laws, see CONST. Art. 11, § 11.

12. For state statutory provisions regarding choking in restaurants, see Health and Safety Code, § 28689.

13. Prior ordinance history: Ord. 907 N.C. (2d).

14. Reserved.

15. Prior ordinance history: Ord. 1089 N.C. (2d): Ord. 1204 N.C. (2d).

16. Prior ordinance history: Ord. No. 967 N.C. (2d); Ord. No. 1526 N.C.(2d), 2004.

17. Ordinance 1545 N.C. (2d), codified as Chapter 7.53 was adopted February 15, 2005 and became effective March 17, 2005.

18. Prior ordinance history includes portions of Ordinance Nos. 315 N.C. (2d), 512 N.C. (2d), 625 N.C. (2d), 916 N.C. (2d), 1365 N.C. (2d) and 1572 N.C. (2d).

19. Prior ordinance history includes portions of Ordinance Nos. 315 N.C. (2d), 430 N.C. (2d), 512 N.C. (2d), 625 N.C. (2d), 1477 N.C. (2d) and 1572 N.C. (2d).

20. Prior ordinance history includes portions of Ordinance Nos. 315 N.C. (2d), 342 N.C. (2d), 351 N.C. (2d), 380 N.C. (2d), 512 N.C. (2d), 625 N.C. (2d), 683 N.C. (2d), 916 N.C. (2d), 1149 N.C. (2d), 1207 N.C. (2d), 1262 N.C. (2d), 1271 N.C. (2d), 1288 N.C. (2d), 1314 N.C. (2d), 1388 N.C. (2d) and 1572 N.C. (2d).

21. Former Chapter 7.49, Recycling, previously codified herein and containing portions of Ordinance No. 1305 N.C. (2d), was repealed in its entirety by Ordinance No. 1572 N.C. (2d) § 4.

22. Prior ordinance history includes portions of Ordinance No. 1572 N.C. (2d).

23. Prior ordinance history includes portions of Ordinance No. 1572 N.C. (2d).

24. Ord. No. 1722 N.C. (2d), § 2, adopted April 26, 2016, enacted a new Chapter 7.101, pertaining to the skate park rules as herein set out.

25. Ord. No. 1779 N.C. (2d), § 10, adopted December 12, 2017, repealed the former § 7.44.160, and enacted a new § 7.44.160 as set out herein. The former § 7.44.160 pertained to rewards and derived from Ord. 1595 N.C. (2d), § 2 (part), 2007.

26. Ord. No. 1781 N.C. (2d), § 1, adopted December 12, 2017, and Ord. No. 1770 N.C. (2d), § 1, adopted September 12, 2017, repealed the former Ch. 7.100, §§ 7.100—7.100.150, and enacted a new Ch. 7.100 as set out herein. The former Ch. 7.100 pertained to similar subject matter and derived from Ord. 1715 N.C. (2d), § 1, 7-28-2015; Ord. No. 1716 N.C.(2d), § 1, 10-27-2015.

27. Ord. No. 1785 N.C. (2d), § 1, adopted February 27, 2018, amended Ch. 7.100 in its entirety to read as herein set out. Former Ch. 7.100, §§ 7.100.010—7.100.140, pertained to medical marijuana, and derived from Ord. No. 1770 N.C. (2d), § 1, 9-12-2017; Ord. No. 1781 N.C. (2d), § 1, 12-12-2017.

28. Ord. No. 1795 N.C. (2d), § 1, adopted May 22, 2018, amended Ch. 7.200 in its entirety to read as herein set out. Former Ch. 7.200, §§ 7.200.010—7.200.100, pertained to cultivation, distribution, and manufacturing of medical marijuana, and derived from Ord. No. 1782 N.C. (2d), § 1, 12-12-2017.

29. Ord. No. 1811 N.C.(2d), § 1, adopted December 18, 2018, repealed the former ch. 7.100, §§ 7.100.010—7.100.140, and enacted a new ch. 7.100 as set out herein. The former ch. 7.100 pertained to similar subject matter and derived from Ord. No. 1785 N.C.(2d), § 1, 2-27-2018.

30. Ord. No. 1812 N.C.(2d), § 1, adopted December 12, 2018, repealed the former ch. 7.200, §§ 7.200.010—7.200.160, and enacted a new ch. 7.200 as set out herein. The former ch. 7.200 pertained to similar subject matter and derived from Ord. No. 1795 N.C.(2d), § 1, 5-22-2018.

31. Ord. No. 1839 N.C. (2d), §§ 1, 2, adopted February 11, 2020, repealed the former ch. 7.20, §§ 7.20.010—7.20.100, and enacted a new ch. 7.06 as set out herein. The former ch. 7.20 pertained to similar subject matter and derived from Ord. 161 N.C. (2d) § 23 (part), 1973; Ord. 215 N.C. (2d) § 1, 1974; Ord. 536 N.C. (2d) § 10, 1980.

32. Ord. No. 1840 N.C. (2d), §§ 4, 5, 8, 10, adopted February 11, 2020, repealed §§ 7.08.040, 7.08.050, 7.08.130, 7.08.180, which pertained to cat, cat license, licensed cat, and unlicensed cat and derived from Ord. 161 N.C. (2d) § 2 (part), 1973.

33. Ord. No. 1840 N.C. (2d), § 13, adopted February 11, 2020, repealed § 7.12.060, which pertained to authority to carry firearms, and derived from Ord. 161 N.C. (2d) § 8, 1973.

34. Ord. No. 1840 N.C. (2d), §§ 18, 19, adopted February 11, 2020, repealed §§ 7.16.060, 7.16.100, which pertained to multiple impoundments, sale or destruction of unlicensed, unredeemed or surrendered animals and derived from Ord. 536 N.C.(2d), § 7, 1980; Ord. 161 N.C. (2d), §§ 20, 31 1973.

35. Ord. No. 1840 N.C. (2d), § 19, adopted February 11, 2020, amended provisions and title of §§ 7.16.110, 7.16.120, as herein set out. Former § 7.16.110 pertained to 'sale or destruction of unredeemed licensed dogs and cats.' Former 7.16.120 pertained to 'discretion to hold unredeemed animal for sale beyond redemption expiration period.'

36. Ord. No. 1840 N.C. (2d), §§ 20, 21, adopted February 11, 2020, amended provisions and title of §§ 7.24.040, 7.24.050, as herein set out. Former § 7.24.040 pertained to 'estray bovines, horses, mules or burros.' Former 7.24.050 pertained to 'livestock or wild animals at large prohibited.'

37. Ord. No. 1840 N.C. (2d), § 25, adopted February 11, 2020, amended provisions and title of § 7.36.020, as herein set out. Former § 7.36.020 pertained to 'animals disturbing the peace.'

38. Ord. No. 1843 N.C. (2d), §§ 1—15, adopted March 24, 2020, amended title of ch. 7.56, and §§ 7.56.010—7.56.130, as herein set out. Former ch. 7.56 pertained to 'weed and rubbish abatement.'

39. Ord. No. 1844 N.C. (2d), §§ 1—21, adopted March 24, 2020, amended title of ch. 7.62, and §§ 7.62.010—7.62.270, as herein set out. Former ch. 7.62 pertained to 'vacant buildings.' The following §§ 7.62.035, 7.62.050, 7.62.060, 7.62.080, 7.62.090, 7.62.110, 7.62.120, 7.62.270 were renamed as herein set out. Former § 7.62.035 pertained to registration requirements for vacant and foreclosed residential buildings; former § 7.62.050 pertained to securing from trespassers; former § 7.62.060 pertained to barricading of alcoves and entry courts; former § 7.62.080 pertained to removal or repair of existing awnings; former 7.62.090 pertained to removal or repair of marquees; former § 7.62.110 pertained to vacant building monitoring; former § 7.62.120 pertained to vacant building monitoring fee; former 7.62.270 pertained to recovery of vacant building monitoring fees; abatement costs and administrative charges.

40. Sec. 9 of Ord. No. 1672 N.C.(2d), adopted Mar. 12, 2013, amended §§ 7.62.130—7.62.150 in their entirety to read as herein set out. Former §§ 7.62.130—7.62.150 pertained to vacant building monitoring and derived from Ord. 1460 N.C.(2d), 2001.

41. Ord. No. 1672 N.C.(2d), adopted Mar. 12, 2013, deleted § 7.62.160, which pertained to vacant building monitoring fee—decision of the code enforcement appeals board, and derived from Ord. 1460 N.C.(2d), 2001.

42. Ord. No. 1860 N.C (2d), § 1, adopted Jan. 25, 2022, set out provisions intended for use as ch. 7.90. For purposes of classification, and at the editor's discretion, these provisions have been included as 7.89A.

43. Ord. No. 1863 N.C. (2d), §§ 2, 3, adopted May 24, 2022, repealed the former Ch. 7.68, §§ 7.68.010—7.68.120, and enacted a new Ch. 7.68 as set out herein. The former Ch. 7.68 pertained to 'Regulation of Smoking in Public Places and Work Places,' and derived fromOrd. 1297 N.C. (2d) § 2 (part), 1994; Ord. No. 1630 N.C.(2d), § 1, 12-8-2009; Ord. No. 1664 N.C.(2d), §§ 2—4, 4-24-2012; Ord. No. 1758 N.C. (2d), § 1, 5-9-2017.

44. Ord. No. 1865 N.C. (2d), § 1, adopted June 14, 2022, set out provisions intended for use as ch. 7.72. For purposes of classification, and at the editor's discretion, these provisions have been included as ch. 7.73.

45. Ord. No. 1875 N.C. (2d), § 10, adopted December 10, 2024, repealed Ch. 7.69, §§ 7.69.010—7.69.050, which pertained to restrictions on accessibility to cigarettes and other tobacco products and derived from Ord. 1152 N.C. (2d) § 1 (part), 1991; Ord. 1153 N.C. (2d) § 1, 1991; Ord. 1309 N.C. (2d) § 1, 1994; Ord. No. 1630 N.C.(2d), §§ 2, 3, adopted Dec. 8, 2009.