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AGENDA REPORT
DATE: May 13, 2002
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Quinn M. Barrow, City Attorney
SUBJECT: CONSIDERATION OF CITY CHARTER AMENDMENT
TO PROHIBIT RESIDENTIAL PROPERTY RENT
CONTROL
SUMMARY OF REQUEST:
Authorize the City Clerk, City Attorney and staff to prepare necessary documentation for
a ballot measure to revise the City Charter to prohibit residential property rent control.
BACKGROUND:
Councilmember Boyd requested that this item be agendized for consideration by the City
Council. The issue before the City Council is whether to submit to the electorate a ballot
measure to amend the City Charter to prohibit residential property rent control.
Residential property rent control regulations typically fall into one of two categories -
,,vacancy oontror, or "vacancy decontrol." Vacancy control rent control is when a
landlord is prohibited from increasing rental rates above a designated percentage upon the
vacancy of a dwelling unit. By contrast, vacancy decontrol rent control is when a
landlord is prohibited from increasing rental rates above a designated percentage for
existing tenants.
In 1995, the Legislature enacted the Costa - Hawkins Rental Housing Act (Civil Code
Section 1954.50 et seq.) to limit local authority to impose rent control regulations. This
statute generally provides that, commencing January 1, 1999, cities and counties are
preempted from enforcing vacancy control rent control regulations. There are some
exceptions to this preemption, one of which is that it is inapplicable when a property
owner has contractually agreed to rent restrictions in exchange for a direct financial
contribution or certain other forms of assistance from a public entity. Moreover, the
statute does not preclude municipalities from enforcing vacancy decontrol rent control
regulations for dwelling units constructed prior to 1995.
692]30.1
Agenda Item
Consideration of City Charter Amendment Prohibiting Rent Control
City Council StafReport
Maya 1001
OVERVIEW OF PROPOSED CHARTER AMENDMENT
Set forth below for discussion purposes is draft language for a charter amendment to
prohibit residential property rent control:
"Section 202. Rent Control.
(a) Except as provided in paragraph (b), the City shall not enact or enforce any residential
rent control law. For purposes of this section, `residential property rent control law"
means an ordinance, administrative regulation or other measure that regulates the
compensation payable to an owner of residential real property in exchange for rental of
such property.
(b) This section does not preclude the City from enacting or enforcing a residential
property rent control law in any of the following situations:
(1) When the residential real property is a mobilehome park.
(2) When the owner of the residential real property has agreed by contract,
with the City or the Seal Beach Redevelopment Agency, to limit rents in consideration
for a direct financial contribution or other form of assistance from the City or Agency.
(3) When necessary to comply with the terms of a federal or state statute,
regulation or contract "
FISCAL IMPACT:
Minimal costs involved in printing ballot information and ballots. Costs will be reduced,
as the election will be consolidated with the November 5, 2002 General Election.
Quinn M. Barrow
City Attorney
2
659858.3
NOTED
City Manager