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APPROVED ASTO FORM AND LEGALITY

INTRODUCED BY COUNCILMEMBER
(I CfTYATTORNEY( , f ^
ORDINANCE No. 11 589 A c. M. S.
CORRECTED COPY
Nov. 5, 1991
JMG: cnih
AN EMERGENCY ORDINANCE IMPOSING A
MORATORIUM ON RESIDENTIAL RENT
INCREASES FOR NINETY DAYS IN OAKLAND
COMMENCING OCTOBER 20, 1991
WHEREAS, by Resolution No. 68441 C.M.S. of the City of
Oakland, adopted October 20, 1991, the City Council proclaimed the
existence of a local emergency throughout the City of Oakland; and
WHEREAS, the City Council in declaring the existence of
the local emergency made findings as stated in Resolution No. 68441
that conditions of extreme peril to the health, safety, and welfare
of persons and property have arisen within the City caused by an
uncontrollable six alarm fire in the Oakland Hills, which commenced
on or about 11:00 a.m. on the 20th of October, 1991, and that these
conditions of extreme peril necessitated the proclamation of the
existence of a local emergency; and
WHEREAS, by Resolution No. 65452 adopted October 22,
1991, the City Council found that the conditions of extreme peril
to the health, safety, and welfare of persons and property continue
to exist; and proclaimed that a local emergency continues to exist
throughout Oakland and shall be deemed to continue to exist until
its termination is proclaimed by the City Council; and
WHEREAS, as a result of the fire in the Oakland Hills on
October 20, 1991, approximately 2500 living units were destroyed
and an estimated 5,000 people were displaced from their homes; and
WHEREAS, the persons displaced by the fire are in need
immediately of housing and have increased significantly the demand
for single family dwellings available for rent; and
WHEREAS, the vacancy rate of residential rental units is
approximately 5% in the City of Oakland; and
WHEREAS, the supply of affordable single family dwellings
available for rent is insufficient to meet the demands in Oakland
of persons displaced by the fire; and
600-245-005 (7/83)
WHEREAS, due to the dramatic increase in the demand for
single family dwellings which can be rented by persons displaced by
the fire, reports have been received that rents have been, or soon
will be, increased sharply; and
WHEREAS, Ordinance No. 9980 C.M.S., as amended,
established a Residential Rent Arbitration Board in Oakland and
sets forth guidelines for rental increases, but does not control
rent in the event of a voluntary vacancy nor does it control the
rent of rental units in buildings built on or after January 1,
1983, or in substantially rehabilitated buildings; and
WHEREAS, the requirements of the California Environmental
Quality Act (CEQA) of 1970, the guidelines prescribed by the
Secretary for Resources, and the provisions of the Statement of
Objectives Criteria and Procedures for Implementation of the
California Environmental Quality Act: City of Oakland, as amended,
have been satisfied, and that in accordance with Section
15061(b)(3) of the California Code of Regulations, it can be seen
with certainty that there is no possibility that the proposed
Ordinance may have a significant effect on the environment, and
therefore the project is not subject to the California
Environmental Quality Act; and
WHEREAS, The City Council hereby finds and declares that
this rent increase moratorium and the limitations set forth in
Sections 4 and 5 of this Ordinance will allow land owners a fair
return on their investment; and
WHEREAS, the City Counci 1 does herein find that the
immediate control of residential rent for single family dwellings
is necessary to protect and preserve the public health, welfare and
safety by assisting in providing affordable housing to persons
displaced by the fire;
WHEREAS, this rent increase moratorium shall apply only
to single family dwellings? now, therefore,
THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN AS
FOLLOWS:
SECTION l. MORATORIUM. Notwithstanding Ordinance
No. 9980 C.M.S., passed on October 7, 1980, and last amended on
October 28, 1986, hereinafter referred to as the Residential Rent
Arbitration Ordinance, a moratorium is hereby imposed on rent
increases of rental units in the City of Oakland for ninety (90)
days commencing on October 20, 1991.
SECTION 2. EFFECTIVE DATE. This Ordinance shall be
effective immediately and shall apply retroactively to October 20,
1991, which is the commencement date of the ninety (90) day
moratorium.
SECTION 3. DEFINITIONS. For purposes of this Ordinance
the following definitions shall apply:
A. BOARD: The Residential Rent Arbitration Board
established by the Residential Rent Arbitration
Ordinance.
B. HEARING OFFICER; Person(s) designated by the City
Manager to render initial decisions in all rent
arbitration disputes pursuant to the Residential
Rent Arbitration Ordinance or in disputes pursuant
to this Ordinance.
C. LANDLORD: Any owner or lessor of real property or
any other person or entity who receives or is
entitled to receive rent for the use or occupancy of
any rental unit in the City of Oakland and the
representative, agent, or successor or such person,
persons, or entity.
D. RENT: The total consideration demanded or received
by a landlord in exchange for the use or occupancy
of a rental unit.
E. RENTAL UNIT: Any residential unit, and all housing
services provided with such unit that is located in
the City of Oakland and used or occupied by the
payment of rent; provided, however, that the
following dwelling units are not deemed rental units
for purposes of this Ordinance:
(1) Dwelling units whose rents are controlled
or regulated by any government unit,
agency or authority;
(2) Housing accommodations in any hospital,
convent, monastery, extended care
facility, convalescent home for the aged,
or dormitory owned and operated by an
educational institution;
(3) Accommodations in motels, hotels, inns,
tourist houses, rooming houses, and
boarding houses; provided that such
accommodations are not occupied by the
same tenant for 30 or more continuous
days;
(4) Dwelling units in a non-profit
cooperative, owned, occupied, and
controlled by a majority of the residents.
(5) Multi family dwellings which shall include, but
not be limited to, apartments or secondary
units of single family dwellings.
F. SECRETARY TO THE BOARD: The staff person whose
position was established by the Residential Rent
Arbitration Ordinance.
G. TENANT: A person entitled, by written or oral
agreement, to the use or occupancy of any resident
unit.
To the extent that they are not inconsistent with this
Ordinance, the definitions used in the Residential Rent Arbitration
Ordinance shall apply to this Ordinance.
SECTION 4. GUIDELINES FOR DETERMINATION OF RENT. Except
as provided in Section 5 herein, a rent increase in violation of
the moratorium established herein shall have occurred if rent in
excess of any of the following is charged for any rental unit
during the moratorium:
A. The rent in effect on October 20, 1991 of any
occupied rental unit.
B. The rent established, requested, advertized, or
listed for a vacant rental unit as of October
19, 1991.
C. The rent charged to the previous tenant plus
12% for rental units vacant on October 20,
1991, for which the rent had not been
established, requested, advertized, or listed
and which had been rented within the past year.
D. For any rental units to which the circumstances
defined in Section 4 a - c of this Ordinance do
not apply, the fair market value of the rent of
such units as of October 19, 1991.
SECTION 5. STANDARDS FOR EXCEPTIONS TO RENT LIMITATIONS.
Any rent which is charged during the moratorium in excess of the
limitations on rent as defined in Section 4 of this Ordinance and
which is under dispute must be justified on one or more of the
following grounds:
A. Capital improvement costs;
B. Uninsured repair costs;
C. Increase in housing service costs;
D. Past history of rent increases;
E. Debt service costs;
F. Landlord had been approved by the Hearing
Officer or the Board pursuant to the
Residential Rent Arbitration Ordinance prior to
October 20, 1991 to increase the rent;
G. Any other factors the Hearing Officer and Board
deem relevant.
To the extent that they are not inconsistent with this
Ordinance, the Residential Rent Arbitration Board Rules and
Procedures, as approved by Oakland City Council Resolution No.
63429 C.M.S., shall apply to this Ordinance,
SECTION 6. EFFECT ON THE RESIDENTIAL RENT ARBITRATION
ORDINANCE. Except as otherwise stated herein, the Residential Rent
Arbitration Ordinance shall remain in full force and effect. For
any disputes pursuant to the Residential Rent Arbitration Ordinance
which are pending as of the effective date of this Ordinance and
are determined by the Hearing Officer and/or Board to entitle the
Landlord to a rent increase, such increase shall be allowed during
the moratorium to the extent that it is consistent with the
limitations and standards set forth in Section 4 and 5 of this
Ordinance. Any increase in rent that is not permissible during the
moratorium, but which otherwise would be legal pursuant to the
Residential Rent Arbitration Ordinance, may be imposed at the end
of the moratorium, but shall not be retroactive.
SECTION 7. NOTICE. In addition to the notice
requirements of Section 5, subdivision d, of the Residential Rent
Arbitration Ordinance, landlords are hereby required to notify
tenants in writing of this Ordinance.
SECTION 8. HEARING PROCESS FOR DISPUTES.
A. PETITION; The Hearing Officer shall hear
matters to determine whether the rent for a rental
unit complies with the provisions of Section 4 and
5 of this Ordinance upon receipt of a petition for
review submitted by a tenant, a person seeking to
become a tenant, i.e., a prospective tenant, or a
landlord. The petition must be made under penalty
of perjury and allege that a dispute has arisen
concerning whether the rent for the rental unit
exceeds the limitations authorized by this
Ordinance. The petition must be filed with the
Secretary to the Board not later than five (5)
calendar days of the tenant's or prospective
tenant's determination that a violation of this
Ordinance has occurred; or in the case of a
landlord's petition, not later than five (5)
calendar days of the landlords awareness that a
dispute has arisen concerning the rent pursuant to
this Ordinance. To be eligible to file a petition,
a landlord must have a current City business
license. The landlord must disclose in his/her
petition (or response if the landlord is not the
petitioner) whether the rental unit has been rented
to person(s) other than the opposing party and the
amount of rent being charged.
B. RESPONSE: Within one (1) working day of receipt of
the petition the Secretary shall notify the opposing
party to the petition for review that he/she has
five (5) calendar days from the date of mailing of
the Secretary's notice to file a response to the
petition. In addition to sending written notice of
the right to respond, the Secretary shall attempt to
make telephone contact with the opposing party to
notify him/her of the petition and the right to
respond. To be eligible to file a response to a
petition, a landlord must have a current City
business license.
C. HEARING: The Hearing Officer shall have a goal of
hearing the matter within fifteen (15) calendar days
of the filing of the original petition pursuant to
this Ordinance. Priority for hearing dates shall be
given to petitions filed pursuant to this Ordinance.
The Secretary shall notify the petitioner, the
opposing party, and, if applicable, the current
tenant of the rental unit in dispute, of the date of
the hearing at 1 east five (5) days prior to the
hearing date. The Hearing Officer shall render
his/her decision not more than two (2) working days
after the conclusion of the hearing. The parties,
as well as the current tenant in cases where the
current tenant is not a party to the matter, shall
be notified in writing of the decision. Disputes
involving the same real property or more than one
unit in any single building may be consolidated for
hearing by the Secretary if the Secretary determines
consolidation to be in the best interest of the
parties.
D. APPEAL. Either party may appeal the Hearing
Officer's decision within two (2) working days after
receipt of the notice of the decision, by filing
with the Secretary a written notice of such appeal
setting forth the grounds therefor. The Secretary
shall set the matter for hearing and cause notice
thereof to be given to the parties no less than five
(5) days prior to such hearing. Priority shall be
given to appeals filed pursuant to this Ordinance.
The Board shall have a goal of hearing the appeal
within fifteen (15) working days of the filing of
the notice of appeal. Board hearings shall be
conducted pursuant to the provisions of Section 8 of
the Residential Rent Arbitration Ordinance except
that the standards and limitations set forth in
Sections 4 and 5 of this Ordinance shall be
substituted for the references to Section 5 of the
Residential Rent Arbitration Ordinance. The
conclusions and findings of the Board shall be final
and there shall be no appeal rights to the City
Council. The Boards action does not
preclude review by a court of competent
jurisdiction.
SECTION 9: REMEDY.
A. An aggrieved party may bring an action for
injunctive relief or damages, or both, in a court of
competent jurisdiction for any violation of the
provisions of this Ordinance.
B. Failure of a party to abide by an order or decision
of a Hearing Officer and/or the Residential Rent
Arbitration Board shall be deemed a violation of
this Ordinance and shall be punishable as an
infraction unless otherwise provided in this code.
C. Each party violating this Ordinance shall be guilty
of a separate offense for each and every day during
any portion of which any violation of any provision
of this Ordinance is committed, continued, or
permitted by such person and shall be punishable
accordingly.
D. Such violations may be redressed by Civil Action
brought by the City Attorney or the landlord,
tenant, prospective tenant or his/her
representative.
E. Any person convicted of an infraction under the
provisions of this Ordinance shall be punishable
upon the first conviction of a fine of not more than
fifty dollars ($50.00), and for a second conviction
within a period of a year by a fine of not more than
one hundred dollars ($100.00), and for a third or
any subsequent conviction within a one-year period
by a fine of not more than two hundred fifty dollars
($250.00). However, an evaluation beyond the third
conviction within a one-year period may be charged
by the City Attorney or the District Attorney as a
misdemeanor, and the penalty for a conviction of the
same shall be punishable by a fine of not more than
five hundred dollars ($500.00) or by imprisonment in
the County Jail for a period of not more than six
months or by both.
F. In addition to the punishment provided by law, a
violator is liable for such costs, expenses, and
disbursements paid or incurred by the City in
abatement and prosecution of the violation.
G. Pursuant to Section 836.5 of the California Penal
Code, the Deputy City Manager or his/her authorized
representatives are hereby authorized to enforce
this ordinance and arrest violators thereof.
H. The City Manager shall have the power to designate
by written order that particular officers or
employees shall be authorized to enforce particular
provisions of this Ordinance in addition to those
officers enumerated in subsection g. Officers or
employees so designated shall have the authority to
arrest persons who violate any of said provisions.
SECTION 10. SEVERABILITY. This Ordinance shall be
liberally construed to achieve its purposes and preserve its
validity. If any section, subsection, subdivision, paragraph,
sentence, clause or phrase of this Ordinance or any part thereof,
is for any reason held to be unconstitutional or invalid or
ineffective by any court of competent jurisdiction, such decision
shall not effect the validity or effectiveness of the remaining
portions of this Ordinance or any part thereof. The City Council
hereby declares that it would have passed each section, subsection,
subdivision, paragraph, sentence, clause or phrase thereof
irrespective of the fact that any one or more section, subsection,
subdivision, paragraph, sentence, clause or thereof irrespective of
the fact that any one or more section, subsections, subdivisions,
paragraphs, sentences, clauses or phrases be declared
unconstitutional or invalid or ineffective.
SECTION 11. CEQA. This Ordinance complies with the
requirements of the California Environmental Quality Act.
8
SECTION 12. RECITALS. The recitals herein are true and
correct and are an integral part of this Ordinance.
SECTION 13. NON-WAIVERABILITY. Any provision, whether
oral or written, in or pertaining to a rental agreement whereby any
provision of this Ordinance is waived or modified, is against
public policy and void.
SECTION 14. PUBLICATION. Within three (3) days.of the
date of this Ordinance, the City Clerk is directed to cause a copy
of the Ordinance to be published twice weekly, for the duration of
the emergency, in the Tribune and the Montclarion. The term
"emergency" as used in this Ordinance shall mean the emergency
declared by the City Council on October 20, 1991.
OPT 79 1991
INCOUNCIL, OAKLAND, CALIFORNIA,
UUI c
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PASSED BY THE FOLLOWING VOTE:
AYES BA2ILE, <#SWMC)S, GIBSONHASKELL, MILEY, MOORE, OGAWA, RILES, SPEES, and PRESIDENT HARRIS ,
NOES NONE
ABSENT CANNON, - 1
ABSTENTION NONE
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ATTEST:
ARRECE JAMESON
City Clerk and Clerk of the Council
6 0 0 -24 2(1/ 3 1) of the City of Oakland, California