Concord City Council To Consider Rent Stabilization At Tonight’s Meeting

The Concord City Council will consider a draft ordinance tonight that would establish rent stabilization and just cause for eviction policies. The major features of the proposed laws are outlined below.

In addition, city staff has learned that misinformation about the ordinance is circulating within the community, and we want to clarify that single-family homes WILL NOT be subject to the proposed rent stabilization provisions.

In addition, the only aspect of the proposed regulations that would roll back (or be retroactive) to January of 2023 is the rent amount and allowable annual rent increase that multi-family rental properties built before 1995 may charge as the proposed new ordinance takes effect.

Read the proposed ordinance.

Read the Feb. 13 staff report.

View the chart indicating which types of units are covered under each provision of the ordinance.

Public comments can be emailed to CityClerk@cityofconcord.org before 3 p.m. on Feb. 13 to become part of the official record and to be shared with Councilmembers prior to the meeting. Because this meeting is a continuation of the Jan. 30 meeting, and Council has collectively heard more than 12 hours of public comment on this topic, the in-person public comment period has been closed.

RENT STABILIZATION  

Rent stabilization would NOT apply to rented single-family homes, rented condominium units, or rented accessory dwelling units.

Rent stabilization WILL apply to multi-family rental complexes of 2 or more units built before Feb. 1, 1995.

Here is a brief description of major features to be included in the proposed new Ordinance:

• Limit annual rent increases to 3% or 60% of the Consumer Price Index (CPI), whichever is lower.
• Controls the allowable rent increases upon the first date of occupancy but does not control the dollar amount for starting-of-occupancy rent (i.e., it preserves vacancy decontrol).
• Includes a “rent rollback” provision that sets rents to the dollar amounts that were charged for rent as of January 12, 2023, plus allows for up to the Ordinance-allowed rent increase of 2.52% for the 2023 calendar year (2.52% is 60% of the CPI for April 2023).
• The Ordinance would establish a process utilizing a Hearing Officer whereby tenants could appeal their rent increases, if they believed them to be inconsistent with the City Ordinance, and whereby property owners could request higher rent increases, above what the Ordinance would otherwise allow, to obtain a fair return on their investment property.

JUST CAUSE FOR EVICTION  

Just cause for eviction WOULD apply to most rented units in Concord, including rented single-family homes and rented condominium units.

Just cause would NOT apply to rented accessory dwelling units.

Here is a brief description of major features to be included in the proposed new Ordinance:

• Just cause regulations do not apply when a tenant is evicted for “at-fault” reasons, such as non-payment of rent, breach of a material term of the lease, or occupying the space in such a manner as to create a nuisance or criminal activity.
• Just cause protections for tenants would be triggered when a tenant is evicted for “no-fault on the tenant’s part” reasons, such as when an owner wants to move into the unit, wants to remove the entire complex from the rental market (Ellis Act eviction), or needs the unit vacant to perform substantial rehabilitations.
• A “right of return” would be available in some instances, such as when substantial rehabilitation is completed, or if an owner returns the unit to the rental market within a specified time after an Ellis Act eviction.
• In the case of no-fault evictions, just cause provisions in the revised draft Ordinance would require the property owner to pay three times the Federal Housing and Urban Development (HUD) Fair Market Rent (FMR) and an extra $3,000 to cover moving expenses. If applied in 2024, the total payment required would range from $8,475 for a studio unit to $14,862 for a four-bedroom home, apartment, or condominium. Prices are set by HUD for each calendar year. Certain tenants, such as those over 62 years of age, or who are terminally ill or disabled, would be eligible for an additional month of FMR.

Everyone who owns property subject to either rent stabilization or just cause protections would be required to register their unit(s) with the City of Concord annually and pay a yet-to-be-determined annual registration and administration fee.