Legislative Public Meetings

Share to Facebook Share to Twitter Bookmark and Share
File #: 19-1252   
Type: Report to Council Status: Passed
Meeting Body: City Council
On agenda: 12/3/2019
Title: Consider Adoption of an Emergency Ordinance Under Sunnyvale City Charter Section 701 to Implement Tenant Eviction Protections and Limit Large Rental Rate Increases Effective Immediately and Retroactive to October 8, 2019, to Avoid Circumvention of AB 1482
Attachments: 1. Emergency Ordinance, 2. Correspondence Received
REPORT TO COUNCIL

SUBJECT
Title
Consider Adoption of an Emergency Ordinance Under Sunnyvale City Charter Section 701 to Implement Tenant Eviction Protections and Limit Large Rental Rate Increases Effective Immediately and Retroactive to October 8, 2019, to Avoid Circumvention of AB 1482

Report
BACKGROUND
In 2019, the San Jose-Sunnyvale-Santa Clara metropolitan area had the highest overall housing costs in the nation, and the second highest residential rental rates after San Francisco, surpassing even New York City.1 High rents are a direct cause of housing instability and homelessness. Landlords have strong financial incentives to evict long-term tenants who cannot afford rent increases, and replace them with higher income tenants who can pay market rates. Low and even moderate-income individuals and families can become caught in a cycle of evictions and displacement.

Assembly Bill 1482 was signed by the Governor on October 8, 2019 and becomes effective on January 1, 2020. AB 1482 implements two major tenant protections for renters in California: (1) a cap on rent increases beyond a statutory maximum, and (2) a prohibition on evicting tenants without "just cause." The state legislation applies to rental apartment units that are more than 15 years old. There are a number of housing types that are exempt from the requirements imposed by AB 1482, including single family homes, condominiums, owner-occupied housing, and mobile homes.

Rent Cap
AB 1482 imposes a cap on rent increases that would prevent landlords from raising rents by more than 5% per year plus the percentage change in the cost of living, or 10%, whichever is lower. The increase is tied to annual April/April Bay Area Consumer Price Index (CPI). To provide historical context, staff researched the annual April CPI percentage change for the last four years. In 2018, 2017, 2016, and 2015, the CPI increase was approximately 3.2%, 3.8%, 2.7%, and 2.4%, respectively. The April 2019 Bay Area CPI increase ...

Click here for full text