Rent Control - City of Santa Monica

Rent Control News is published by the Rent Control Board of the City of Santa Monica

Rent Control Board Settles Ellis Act Lawsuit

The Santa Monica Rent Control Board recently settled a lawsuit it filed against a Santa Monica landlord involving alleged violations of the state Ellis Act. The landlord, S.M. Ocean Star, LLC, paid $100,000 in the settlement.

Enacted by the California legislature in 1986, the Ellis Act permits landlords to go out of the rental business, but allows the Rent Control Board to enforce restrictions on future use of the property. S.M. Ocean Star, LLC withdrew from the rental market one of the three residential rental buildings at 423 – 429 Ocean Avenue in July, 2004. Tenants in four units were evicted. The lawsuit alleged that the owner re-rented some of the units within two years of withdrawing them from the market.

The Rent Control Board reminds landlords that although the Ellis Act permits them to withdraw units from the rental market, if they decide to re-rent the units they must follow the Board’s procedures. If the landlord offers the units for rent within two years of withdrawing them, this could subject the landlord to penalties. Under the Ellis Act, the Rent Control Board is authorized to bring an action for damages to penalize a landlord for abusing the Ellis Act.

"The Rent Control Board, in cooperation with the City Attorney’s Office, is monitoring Santa Monica properties withdrawn under the Ellis Act," said Michaelyn Jones, General Counsel for the Board. "Because abuse of the Ellis Act disrupts tenants’ lives and robs them of their homes, violations will be taken seriously."

In the action against Ocean Star, LLC, the property owner denied that it re-rented the units, but opted to settle the matter for business reasons. Three of the evicted tenants are pursuing separate law suits against the owner.

Board Authorizes Pass-Through of the Clean Beaches and Ocean Parcel Tax

On January 10, 2008, the Rent Control Board authorized owners to pass through the cost of the Clean Beaches and Ocean Parcel Tax to tenants as a surcharge on their monthly rent. There is an exemption from the pass-through for low income tenants.

Approved by more than two-thirds of Santa Monica voters in November 2006, the parcel tax raises revenue for implementing the City’s Watershed Management Plan. The goals of the plan are to reduce urban run-off pollution; reduce urban flooding; increase water reuse and conservation; increase recreational opportunities and open space; and increase wildlife and marine habitat.

The parcel tax is billed on an owner’s annual property tax bill, and the amount for multi-family properties depends upon parcel size and a "run-off factor," the average storm drainage from the parcel. As of March 2008 or later, an owner was allowed to pass through the cost, divided among the total number of units on the property, over a 12-month period. The owner must comply with all noticing requirements in Civil Code section 827 and give the tenant a copy of the tax bill which shows the tax.

In order not to send out a separate notice, many owners will likely wait until they notice tenants of the September 2008 rent increase to pass through the first annual Clean Beaches and Ocean Parcel Tax, even though it first appeared on their 2007 property tax bill. Specific noticing requirements are detailed in Regulation 3108 available on the Board’s website (www.smgov.net/rentcontrol ) or at the Rent Control office.

EXEMPTION FROM THE TAX
As approved by the voters, the Clean Beaches and Ocean Parcel Tax provides for a special exemption from the tax for low-income tenants and homeowners. In September 2007 the City Council established the following income levels for eligibility for exemption from the surcharge for FY 2007-08:

▪ 1-person household with gross income $25,002 or less.

▪ 2-or more person household with gross income $28,650 or less.

These amounts will be adjusted each July by the City Council.

Tenants claiming exemption from the pass-through must complete an application on a form provided by the City and submit financial information. The forms are available from the Rent Control office. Tenants should contact the Rent Control Board for the application as soon as they receive notice from their landlord to collect the surcharge.

Polystyrene Ban to Aid Marine Animals and Seabirds

Santa Monica has joined sister cities across the country in banning non-recyclable plastic food to-go containers -- an important step toward protecting our oceans, lakes and streams from the ravages of plastics litter. The Santa Monica ban took effect on February 9, 2008 for all food service providers in Santa Monica and an earlier ban mandates the same for City facilities and events.

Expanded polystyrene (Styrofoam®) and other non-recyclable plastics make up the majority of the litter that ends up in Santa Monica's storm drains and on its beaches. Plastics made from crude oil break apart into ever smaller pieces but don’t break down completely, sticking around for centuries. The pollutant is unsightly to beach-goers and costly to clean up throughout the year. But most importantly, plastics cause significant environmental damage as they are commonly mistaken for food by marine animals and seabirds, resulting in reduced appetite and nutrient absorption and possible death by starvation.

For more information on the polystyrene ban visit www.smepd.org/container or contact Josephine Miller of the Environmental Programs Division at (310) 458-4925 or josephine.miller@smgov.net .

New Rent Control Administrator Named

Tracy Condon assumed her new position as Administrator of the Santa Monica Rent Control Board at the beginning of the year. In her 20-year tenure with the Rent Control Agency, Ms. Condon has served in a variety of positions, including Public Information Manager for the last 13 years. An extensive search was conducted to fill the position vacated by longtime administrator Mary Ann Yurkonis who retired at the end of 2007. Commissioner Joel Koury, who was chosen as the new Chair of the Rent Board at its January meeting said, "In our search for a new administrator, we were fortunate to have a significant number of extremely well-qualified applicants. Yet, despite this strong field of candidates, everyone involved with the hiring process was immediately impressed with Tracy’s knowledge, strength and vision for guiding this department in the years to come. When it comes to integrity and leadership the bar has been set pretty high by our former administrator, but if there is anyone who can exceed that standard, it is our new administrator, Tracy Condon."

Ms. Condon, a Santa Monica resident, affirmed she will maintain established traditions of the Agency which has served a vital role in the City. "We have a tremendous staff and I’m looking forward to working with them to preserve affordable housing options and to continue to provide excellent service to our community."

RENTER ASSISTANCE CLAIM: STILL TIME TO APPLY FOR 2007

THE DEADLINE FOR QUALIFIED CALIFORNIA RENTERS TO FILE THEIR 2007 RENTER ASSISTANCE CLAIM IS JUNE 30, 2008. This refund from the State is based on property taxes the tenant pays indirectly through rent. It is different from the Renter’s Credit claimed on the state income tax return. The 2007 claim is based on income received in 2006. To qualify a tenant must have met the following qualifications in 2006:

The tenant was at least 62 years of age, or disabled, or blind;

Rent was paid in 2006 for an apartment in California which was their principal place of residence;

The total household income in 2006 was $42,770 or less; Qualified renters may receive between $15 and $347.50, depending on their income.

Forms and instructions are available at the Rent Control office, at WISE Senior Center in Santa Monica, and from the Franchise Tax Board at www.ftb.ca.gov or by calling 1-800-868-4171. Seniors may call WISE to make an appointment for assistance in filing out the Renter Assistance Claim form at (310) 394-9871, extension 415. Ask for Marcy.

Homeowners and condominium owners who meet similar income eligibility requirements may file a Homeowner Assistance Claim. Information for homeowners regarding this claim is also available at www.ftb.ca.gov or by calling 1-800-868-4171.

UPCOMING RENT CONTROL EVENTS

For more information on any of the above events, call an Information Coordinator at 310-458-8751.

40th Anniversary of the Passage of the
Federal Fair Housing Act

On April 11, 1968 President Lyndon Johnson signed the Civil Rights Act of 1968 which included the Fair Housing Act. It prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, national origin, sex, (and as later amended) disability and family status.

Throughout the month of April 2008, the City of Santa Monica will recognize and honor the 40th Anniversary of the Fair Housing Act and the efforts toward equality in housing. Please check www.smconsumer.org for updates on 40^th Anniversary events in Santa Monica.