Amicus Curiae Brief — Yee v. Escondido

70-1947 a

WV

IN THE

SUPREME COURT

OF THE UNITED STATES

October Term, 1990

JOHN K. YEE AND IRENE S. YEE, d.N.

AND FRANCES C. BERGER FOUNDATION,

MOUNTAIN SHADOWS MOBILE HOME

ESTATES, RICHARD C. KUEBLER, dba

MOONGLOW MOBILE HOME PARK, CASA

DE AMIGOS MOBILE HOME ESTATE,

VISTA VERDE, LTD., IMPERIAL

ESCONDIDO MOBILE ESTATES and

MILDRED D. TACEY,

Petitioners,

vs.

THE CITY OF ESCONDIDO,

Respondent.

BRIEF FOR ACTION IN SANTA MONICA

AS AMICUS CURIAE

BRENDA POWERS BARNES

2812 Santa Monica Blvd.,

Suite 200

Santa Monica, CA 90404

(310) 829-1471

Attorney for Amicus Curiae

ACTION in Santa Monica

EDITOR'S NOTE

THE FOLLOWING PAGES WERE POOR HARD COPY

AT THE TIME OF FILMING.

BETTER COPY CAN BE OBTAINED, A NEW FICHE

WILL BE

ISSUED.

IF AND WHEN A

This brief supports petitioners in

seeking reversal of the decision of the

Fourth Appellate District, Division One,

Court of Appeal for California, which

states a rent control law that in operation

required petitioners to accept as tenants

persons petitioners as owners of rental

property had not chosen, constituted

neither a taking without just compensation

nor a denial of due process of law in

violation of the Fifth Amendment to the

United States Constitution. Consent to

file was obtained from counsel for

petitioners and respondent.

INTEREST OF ACTION IN SANTA MONICA

Amicus “ACTION in Santa Monica" is a

group of over 700 apartment building owners

in the City of Santa Monica, covered by a

rent control law (“the Rent Control Law")!

similar to that covering petitioners, not

allowing vacancy decontrol. That is, when

a tenant moves, the owner must charge a new

tenant the same rent charged the previous

one, base rent plus adjustments the Rent

Control Board has allowed since the Rent

Control Law passed in 1979.

Amicus’ interest in this case is in

aiding the Court to make a clear decision

exactly what constitutes a taking of

appellants’ property. This is not sale of

mobile homes at a premium due to the right

to park them on rent-controlled spaces, as

the Hall case? originally seemed to state,

but rather, as the Pinewood Estates’ and

- — —

1 City Charter Chapter 18, commonly called the

Rent Control Charter Amendment, attached in the

Appendix hereto as Exhibit A.

2 Hall v. City of Santa Barbara, 833 F.2d 1270

(9th Cir. 1987), cert, denied 485 U.S. 940, 108

S.Ct. 1120, 99 L.Ed.2d 281 (1988).

Township, 898 F.2d 347 (3rd Cir. 1990).

2

Azul Pacifico’ cases have more recently

stated, passing a rent control law that, in

combination with state law, gives tenants a

right to stay indefinitely on the owners’

property. The power to exclude, basic to

private property, has been taken.

Compensation for taking away of that power

is what the Court should state is due.

The difference in how the Court finds

the taking is important to amicus beyond

its importance to the parties. Amicus

members face a situation where state law

and unclear provisions of the Rent Control

Law added in 1989 have not yet been

interpreted by the highest court of the

state to require keeping new tenants chosen

by old tenants. Lower courts have stated

amicus have no right to evict tenants for

F.2d (9th Cir., November 1, 1991, 91

Daily Journal D.A.R. 13599).

3

sub-leasing unless owners reserved the

right in leases predating rent control.

Even if owners could evict the tenants, an

unauthorized sub-tenant seems to be given

the right to stay as a tenant under the

Rent Control Law, as simply being an

unauthorized sub-tenant is not a "good

cause” required for eviction.> Thus, if

> See Exhibit A in Appendix, section 1806, and

Regulations of Santa Monica Rent Control Board,

chapter 9, in Exhibit B in Appendix. See

particularly Section 1806(g), which allows eviction

of an unauthorized sub-tenant only “at the end of

the term of [a] rental housing agreement.” An

informal survey indicates in approximately 80% of

the cases, amicus members before rent control did

not have rental housing agreements with termination

dates. Under Section 1806(e), they cannot now

require such terms. Also see particularly,

Sections 2004, 9002(j) and 9007 of the Rent Control

Board's Regulations in Exhibit B, added together in

1989 and apparently meant to keep amicus from being

able to limit residents of apartments to the

particular tenants amicus have chosen. In

addition, the City of Santa Monica requires owners

to accept as tenants spouses and children who come

to live with a tenant after the beginning of a

tenancy, so that it appears, in the event of

divorce or death of the original tenant and a

desire of the new tenant to stay in the apartment

without the original tenant, the owner must accept

the stranger as a tenant. These provisions have

not been tested through the highest court in the

state for their meaning and effect.

4

this Court states clearly in this case that

the taking consists of taking away the

power to exclude tenants, and the highest

state court later states amicus cannot

exclude unauthorized sub-tenants, a taking

will then be established. On the other

hand, if this Court requires a sale of a

mobile home coach tc establish the taking,

this case will not apply to amicus.

More importantly to the Court and to

the development of the takings law, if the

Court finds the taking consists of what the

owners have lost, not what the tenants have

gained, amicus here submits the Court will

rule correctly. The taking consists, not

of what the state gives aiuother person--in

this case, the premium for a coach; but

rather, of what the state takes from the

owner--in this case, the right to exclude

TABLE OF CONTENTS

unwanted tenants.®

Page

Table of Authorities 8

Summary of Argument 9

Argument ll

I. The rent control law operating to

authorize tenants unauthorized by the owner

constitutes a taking because if it is

regulatory, it substantially advances no

legitimate state interest.

ll

II. If the rent control law allows

permanent possessory rights to tenants by

allowing them to choose the next tenants,

the law constitutes a taking without just

compensation regardless of the state's

interest.

13

6 Amicus does not here discuss whether rent

control can without just compensation take away the

right an owner had before rent control to exclude

the very tenant the owner had chosen, due to Conclusion 14

changes in the behavior of the tenant, a need of

the owner for the apartment, or other circumstances

after the tenancy began. That question will have

to remain for a case where the facts more closely

present that issue. Here, where the question is

whether compensation is due when the facts indicate

transfers to strangers to the owners have occurred,

amicus submits it is appropriate to frame the

answer so that it consistently treats all owners,

not just mobile home park owners, from whom the

right to exclude strangers is taken by particular

rent control laws.

Amicus also has no interest separate from

that of the parties in the substantive due process

claim, so amicus will not discuss that issue.

6

TABLE OF AUTHORITIES

Federe] Cases

Page(s)

nou) Pacifi >; e] a

F.2d (9th Cir., November 1, 1991,

91 Daily Journal D.A.R. 13599) . . .2, 13

Hall v. City of Santa Barbara,

833 F.2d 1270 (9th Cir. 1987), cert. denied

ae Gee. . 6b is sb ee 8 ke 6

Loretto v. Teleprompter Manhattan CATV

Corp.,

458 U.S. 419 (1982) ...... . .13, 14

Pj LE ) € Michi :

Township,

898 F.2d 347 (3rd Cir. 1990). ... .2

Pruneyard Shopping Center v. Robbins j ’

Say Walls Ps GE 6 sc os 6 ee ee SS

Schad v. Borough of Mount Ephraim,

oe Gis Ges Oe Eee) «6 6 oe ee 82

United States v. Rands,

- eS. Fo ees |

City Statutes

Rent Control Charter Amendment,

Santa Monica City Charter Sec. 1806 .4

City Regulations

SANTA MONICA RENT CONTROL BOARD

Regulation 2004 ..... . «

Regulation 9002(j)

Regulation 9007

> > >

SUMMARY OF ARGUMENT

I. A rent control law such as that

involved in this case, operating to allow

tenants unauthorized by the owner to stay

indefinitely on the owner's property,

consists of a taking for public use without

just compensation because if the law is

regulatory, allowing tenants to choose the

next tenants does not substantially advance

a legitimate state interest. If the

legitimate reason for a rent control law is

a shortage of rentals,’ allowing tenants

rather than owners to exploit the shortage

accomplishes no purpose. The cost to new

tenants is the same whether they pay a

bonus to moving tenants for a space, or pay

the owner. Transfering ownership rights in

7 A proposition amicus accepts only for

purposes of argument.

property to tenants is thus confiscatory,

for no legitimate state purpose.

II. If the rent control law allows

permanent possessory rights to tenants, the

law constitutes a taking without just

compensation regardless of the state's

interest, so discussion of any legitimate

state interest is irrelevant.

10

ARGUMENT

I. The rent control law operating to

authorize tenants unauthorized by the owner

constitutes a taking because if it is

regulatory, it substantially advances no

legitimate state interest.

Land use regulations have been granted

deference by this Court as long as they

substantially advance a legitimate state

interest. Schad v. Borough of Mount

Ephraim, 452 U.S. 61, 68 (1981). This

deference comes under both a due process of

law analysis or a takings analysis, since

if the law involved is regulatory, the

analysis under the two clauses is the same.

The question is whether the law is

authorized under the state's police power,

that is, substantially advances a

legitimate state interest.

In the case of a rent control law that

allows moving tenants to choose the next

11

tenants, whether or not as was in evidence

in the instant case, the moving tenants

charge for the privilege, no legitimate

state interest is advanced. The state may

have an jinterest in allowing tenants to

receive money because the state thinks

tenants are poor or deserving or voters,

but unless the state uses general funds to

support that belief, that interest is not

legitimate. "Robin Hood" ideas of

redistribution of wealth are not

countenanced by the Fifth Amendment, which

requires that society in general, rather

than a few citizens, pay for general

problems. Pruneyard Shopping Center vy.

Robbins, 447 U.S. 74, 83 n. 7 (1980),

citing United States v. Rands, 389 U.S.

121, 126 (1967). Thus, because the

interest advanced by allowing tenants to

choose the next tenants is not legitimate,

12

even if this law is regulatory, it violates

the takings clause.

II. If the rent control law allows

permanent possessory rights to tenants by

allowing them to choose the next tenants,

the law constitutes a taking without just

compensation regardless of the state's

interest. Loretto v. Teleprompter

Manhattan CATV Corp., 458 U.S. 419, 426,

102 S.Ct. 3164, 73 L.Ed.2d 868 (1982).

Thus, the three-part test in Hal] _v. City

of Santa Barbara, 833 F.2d 1270, 1280 (9th

Cir. 1987), cert. denied 485 U.S. 940, 108

S.Ct. 1120, 99 L.Ed.2d 281 (1988), followed

in Azul Pacifico vy. City of Los Angeles,

F.2d __—s« (9th Cir. November 1, 1991, 91

Daily Journal D.A.R. 13599, 13600), is

incorrect in possessory rights cases in

including the middle prong. For if the

first prong is found in the affirmative, a

13

taking is established under Loretto, gupra,

regardless of the state interest.

Here, where tenants can stay in an

owner's property whether or not the owner

approves, for as long as the tenants wish,

and can transfer that right without the

owner's approval, there is without doubt

possession. In these circumstances, the

state cannot have an interest sufficient to

remove the requirement that it pay

compensation.

CONCLUSION

Requiring owners such as appellants to

accept unauthorized tenants satisfies no

legitimate state interest so is a taking if

the law is seen as regulatory. Further, it

takes the right to use, dispose of and sell

property from the owners and gives it to

the tenants, so is a taking regardless of

the state's interest. The judgment of the

Fourth Appellate District, Division One, of

14

the State cf California should be reversed

for either reason.

DATED: November 25, 1991

__Respectfully submitted,

Brenda Powers Barnes

Attorney for Amicus

Curiae, ACTION in

Santa Monica

15

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=i aad

SECTION 1800. Statement of Purpose. A

growing shortage of housing units resulting ina

low vacancy rate and rapidly rising rents ex-

ploiting this shortage constitute a serious

housing problem affecting the lives of a sub-

stantial portion of those Santa Monica residents

who reside in residential housing. In addition,

speculation in the purchase and sale of existing

residential housing units results in further rent

increases. These conditions endanger the public

health and welfare of Santa Monica tenants,

especially the poor, minorities, students, young

families, and senior citizens. The purpose of this

Article, therefore, is to alleviate the hardship

caused by this serious housing shortage by

establishing a Rent Control Board empowered

to regulate rentals in the City of Santa Monica

so that rents will not be increased unreasonably

and so that landiords will receive no more than

a fair return.

In order to accomplish this purpose, this

Article provides for an elected Rent Control

Board to ensure that rents are at a fair level by

requiring landlords to justify any rents in excess

of the rents in effect one year prior to the

adoption of this Article. Tenants may seek rent

reductions from the rent in effect one year prior

to the adoption of this Article by establishing

that those rents are excessive. In addition to

giving tenants an opportunity to contest any

rent increase, this Article attempts to provide

reasonable protection to tenants by controlling

removal of controlled rental units from the

housing market and by requiring just cause for

any eviction from a controlled rental unit.

A l

Through this Article, the City exercises its

police power in order to address the serious

housing problem recognized in the original

enactment ofthis Rent Control Law in 1979 and

still existing in 1984. The 1984 Amendment to

the Rent Control Law is intended to clarify the

law and ensure that the Rent Control Board

possesses adequate and independent authority

to carry out its duties. It is intended to ensure

due process of law for landiords and tenants,

effective remedies for violation of the law, and

consistency with constitutional requirements.

It is also intended to enable the Board to

provide relief to persons facing particular

hardship and to protect and increase the supply

of affordable housing in the City. Termination

or erosion of the protections of this Article

would have serious disruptive consequences for

persons in need of protection and the supply of

affordable housing in the City.

SECTION 1801. Definitions. The following

words or phrases as used in this Article shall

have the following meanings:

(a) Board. Theterm “Board” refers to the

elected Rent Control Board established by this

Article.

- (b) Commissioners. The members of the

Board and Interim Board are denominated

Commissioners.

(c) Controlled Rental Units. All resi-

dential rental usits in the City of Santa Monica,

including mobile homes, and mobile home spaces,

and trailers and trailer spaces, except sinyle

family homes to the extent provided for in

Section 1815 and those units found by the

A 2

Board to be exempt under one or more of the

following provisions:

(1) Rental units in hotels, motels, inns,

tourist homes and rooming and boarding houses

which are rented primarily to transient guests

for a period of less than fourteen (14) days.

(2) Rental units in any hospital, convent,

monastery, extended medical care facility,

asylum, non-profit home for the aged, or

dormitory owned and operated by an institution

of higher education.

(3) Rental units which a government unit,

agency or authority owns, operates, manages,

or in which governmentally subsidized tenants

reside only if applicable Federal or State law or

administrative regulation specially exempt such

units from municipal rent control.

(4) Rental units in owner-occupied dwellings

with no more than three (3) units. For purposes

of this section:

(i) Theterm “owner” means a natural person

who owns a fifty (50) percent ownership interest

in the building and resides on the property as ~

his or her principal place of residence.

(ii) An exemption under this Section shall

expire by operation of law when the owner

ceases to reside on the property as his or her

principal place of residence; thereafter, all units

on the property shall be subject to all provisions

of this Article.

(5) Rental units and dwellings constructed

after the adoption of this Article; this exemption

does not apply to units created as a result of

conversion as opposed to new construction.

A 3

(6) Where aunit is actually used for purposes

of providing, on a nonprofit basis, child care or

other residential social services in accordance

with applicable laws. This exemption shall ex pire

when the use upon which exemption is based

ceases. This exemption shall only apply to units

as they become vacant and shall only operate to

allow the specified use without the necessity of

obtaining a removal permit under this Article.

This exemption shall not be construed to

authorize the eviction of any tenant nor to

authorize the charging of rent in excess of that

permitted under this Article. The Board may

adopt regulations to determine whether a unit

qualifies for an exemption under this Section.

_ (7) Exemptions are not automatic but shall

be granted by the Board upon application bv

the owner pursuant to Board rules, provided

that ifthe Board does not act upon acompleted

application for exemption within ninety (90)

days of its filing it shall be deemed approved.

(d) Housing Service. Housing services

include, but are not limited to repairs,

maintenance, painting, providing light, hot and

cold water, elevator service, window shades and

screens, storage, kitchen, bath and laundry

facilities and privileges, janitor services, refuse

removal, furnishings, telephone, parking, and

any other benefit, privilege or facility connected

with the use or occupancy of any rental unit.

Services to a rental unit shall include a pro-

portionate part of services provided to common

facilities of the building in which the rental unit

is Contained.

(ce) Landlord. An owner, lessor, sublessor

or any other person entitled to receive rent for

the use and occupancy of any rental unit, or an

agent, representative or successor of any of the

foregoing.

(f) Bent. All periodic payments and all

nonmonetary consideration including but not

limited to, the fair market value of goods or

services rendered to or for the benefit of the

landlord under an agreement concerning the

use or occupancy of a rental unit and premises

including all payment and consideration

demanded or paid for parking, pets, furniture,

subletting and security deposits for damages

and cleaning.

(g) Rental Housing Agreement. An

agreement, oral, written or implied, between a

landlord and tenant for use or occupancy of a

rental] unit and for housing services.

(h} Bental Units. Any building, structure,

or part thereof, or land appurtenant thereto, or

any other rental property rented or offered for

rent for living or dwelling house units, together

with all housing services connected with use or

occupancy of such property such as common

areas and recreational facilities held out for use

by the tenant.

(i) Tenant. A tenant, subtenant, lessee,

sublessee or any other person entitled under

the terms of a rental housing agreement to the

use or occupancy of any rental unit.

(j) Recognized Tenant Organization. Any

group of tenants residing in controUed rental

units in the same building or in different buildings

A 5

operated by the same management company,

agent or Jandlord, who requests to be so

designated.

(k) BRentCeiling. Rentceilingreferstothe

limit on the maximum allowable rent which a

landlord may charge on any controlled rental

unit. |

(1) Base Rent Ceiling. The maximum

allowable rent established in Section 1804(b).

(m) Property. All rental units on a parcel

or lot or contiguous parcels or contiguous lots

under common ownership.

_(n) Single FamilyHome. A property that

has been developed with only one one-family

dwelling and any lawful accessory structures,

or a lawfully created condominium, stock co-

operative or similar unit that is part of a larger

residential structure or complex, excepting

those condominiums, stock cooperatives, or

similar units converted after April 10, 1979 for

which no removal permit or vested right

determination has been issued by the Board,

and those created pursuant to Article XX of this

Charter.

SECTION 1802. Integrity and Autonomy of

Board. The Rent Control Board shall be an

integral part of the government of the City, but

shall exercise its powers and duties under this

Article independent of and without interference

from the City Council, City Manager, and City

Attorney. With respect to the internal organ-

ization and affuirs of the Board:

A 6

(a) Budget. The Board shall, prior to July

1 of each year, hold a public hearing on a

proposed budget and adopt an annual budget

for the ensuing fiscal year. At least thirty-five

(35) days prior to the beginning of each fiscal

year, the Board's administrator shall submit to

the Board the proposed budget as prepared by

hum or her. After reviewing the same and

making such revisions as it may deem advisable,

the Board shall determine the time for the

holding of a public hearing thereon and shal!

Cause to be published a notice thereof not less

than ten (10) days prior to said hearing, by at

least one insertion in the official newspaper.

Copies of the proposed budget shall be available

for inspection by the public in the office of the

Board at least ten (10) days prior to said

hearing. The City Council and the City Manager

shall have no authority to oversee, supervise, or

approve this budget. Upon final adoption, the

budget shall be in effect for the ensuing fiscal

year and the amounts stated therein shall be

and become appropriated by the Board for the

respective objects and purposes therein

specified. At any meeting after the adoption of

the budget, the Board may amend or supple-

ment the budget by the affirmative votes of at

least three (3) members. Copies of the adopted

budget and any amendments or supplements

shall be filed with the City Clerk, Citv Controller,

and City Manager. Necessary adjustments to

City administrative procedures shall be made.

(b) Personnel. Except for the elected or

appointed Commissioners, the Administrator,

and attorneys employed to represent or advise

A 7

the Board, ali employees of the Board are within

the classified Civil Service of the City. The Board

shall appoint an Administrator to administer

and supervise the exercise of its powers and

duties who shall be directly responsible to the

Board. All employees of the Board, except the

Administrator and attorneys, shall be hired,

terminated, suspended, and demoted in ac-

cordance with the provisions of Article XI of the

Charter and implementing provisions of the

Municipal Code. The Board shall classify

employee positions, establish employee salaries

and benefits, evaluate the performance of its

employees, and be responsible for the layoff and

recall of its employees, pursuant to regulations

and procedures that it establishes. The Board

may enter into and approve a Memorandum of

Understanding with representatives of its em-

ployees concerning their wages, benefits, hours

of work, and terms and conditions of employ-

ment in accordance with State law. The City

Counci shall have no power to abolish positions

established or classified by the Board under this

Article, notwithstanding any other section of

this Charter. Provisions of the Municipal Code

and other ordinances or resolutions of the City

Council shall not limit the Board's power to

adopt regulations and policies and to approve

Memorandums of Understanding governing its

relationship with its employees under this

Secuion,

(c) Board Legal Work. Legal staff hired by

the Board shall represent and advise the Board,

A 8

its Commissioners, and its staff in any civil

matters, actions, or proceedings in which the

Board, its Commissioners, or its staff, in or by

reason of their official capacity, are concerned

or are a party. The Board may, in its sole

discretion, and withuut approval of the City

Council, retain private attorneys to furnish

legal advice or representation in particular

matters, acClions Or proceedings.

(d) Contracts and Purchases. The Buard

shall comply with the provisions of the City

Charter providing for a centralized purchasing

system and competitive bidding, and shal!

procure goods and services as do other City

agencies. Provided, huwever, that the Buard

shall have sole and fina! authority to employ

attorneys, legislative lobbyists, and other

professionals, and to approve contracts for

such professional services.

(e) Conforming Regulations. If any

portion of this Article is declared invalid or

unenforceable by decision of a court of com-

petent jurisdiction or rendered invalid or un-

enforceable by State or Federal legislation, the

Board and not the City Council shall have

authority to enact replacement regulations

consistent with the intent and purpose of the

invalidated provision and applicable law. Such

replacement regulations shall supersede

invalidated or unenforceable provisions of this

Article to the extent necessary to resolve any

inconsistency. The subject matter of such re-

placement regulations shal) be limited to rent

contro] matters as enumerated in this Article.

A 9

SECTION 1803. Permanent Rent Control

Board.

(a) Composition. There shall be in the

City of Santa Monica a Rent Contro! Board. The

Board shall consist of five (5) elected Com-

missioners. The Board shal elect annually as

chairperson, one of its members to serve in that

Capacity.

(b) Eligibility. Duly qualified electors of

the City of Santa Monica are eligible to serve as

Commissioners of the Board.

(c) Full Disclosure of Holdings. Candi-

dates fur the position of Commissioner shall

submit a verified statement listing all of their

interests and dealings in rea] property, including

but not limited to its Ownership, sale or

Management, during the previous three ('3)

years.

(d) Election of Commissioners. Com-

missioners shall be elected at general municipa!

elections in the same manner as set forth in

Article XIV of the Santa Monica Charter, except

that the first Commissioners shall be elected at

a special municipal election held within ninety

(90) days of the adoption of this Article. The

elected Commissioners shall take office on the

first Tuesday following their election.

(e) Term of Office. Commissioners shal!

be elected to serve terms of four (4) years,

beginning on the first Tuesday following their

election, except that of the first five (5) Com.

missioners elected in accordance with Section

1803(d), the two (2) Commissioners receiving

the most votes shall serve until Apri) 15, 1985

A 10

and the remaining three (3) Commissioners

shall serve until April 18, 1983. Commissioners

shall serve a maximum of two (2) full terms.

(f) Powers and Duties. The Board shall

have the folowing powers and duties:

(1) Set the rent ceilings for all controlled

rental] units.

(2) Require registration of all controlled

rental units under Section 1803(q).

(3) Establish a base rent ceiling on rents

under Section 1804(b).

(4) To make adjustments in the rent ceiling

in accordance with Section 1805.

(5) Set rents at fair and equitable levels in

order to achieve the intent of this Article.

(6) Hire and pay necessary staff, including

hearing examiners and personnel U0 iss ue orders,

rules and regulations, conduct hearings and

charge fees as set forth below.

(7) Make such studies, surveys and in-

vestigations, conduct such hearings, and obtain

such information as is necessary tu Carry out its

powers and duties.

(8) Report annually to the City Council of

the City of Santa Monica on the status of

controlled rental housing.

(9) Remove rei.t controls under Section

1803(r).

(10) Issue permits for removal of controlled

rental units from rental] housing market under

Section 1803(t).

(11) Administer oaths and affirmations and

subpoena witnesses.

A ll

(12) Establish rules and regulations for

deducting penalties and settling civil claims

under Section 1809.

(13) Refer violations of this Article to ap-

propriate authorities for criminal! prosecution.

(14) Seek injunctive and other civil relief

under Section 1811.

(16) Charge and collect registration fees

including penalties for late payments.

(g) Rules and Regulations. The Board

shall issue and follow such rules and regula-

tions, including those which are contained in

this Article, as will further the purposes of this

Article. The Board shall publicize its rules and

regulations prior to promulgation in at least

one newspaper of general circulation in the City

of Santa Monica. The Board shall hold at least

one public hearing to consider the views of

interested parties prior to the adoption of

general] adjustments of the decision to decontro]

or reimpose control for any class of rental] units

under Section ]803(r). All rules and regulations,

internal staff memoranda, and written cor-

respondence explaining the decisions, orders,

and policies of the Board shall be kept in the

Board's office and shall be available to the

public for inspection and copying. The Board

shall publicize this Article so that all residents

of Santa Monica will have the opportunity to

become informed about their legal rights and

duties under Rent Control in Santa Monica. The

Board shall prepare a brochure which fully

describes the legal rights and duties of landlords

and tenants under Rent Control in Santa Monica.

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The brochure will be available to the public, and

each tenant of a controlled rental unit shall

receive a copy of the brochure from his or her

landlord.

(h) Meetings. The Board shall hold such

regularly scheduled meetings as are necessary

to ensure the timely performance of its duties

under this Article. All regular and special

meetings shall be called and conducted in

accordance with State law.

(i) Quorum. Three(3) Commissioners shall

constitute a quorum for the Board.

(j) Voting. The affirmative vote of three

(3) Commissioners of the Board is required for

a decision, including all motions, regulations,

and orders of the Board.

(k) Compensation. Each Commissioner

Shall receive for every meeting attended

seventy-five dollars ($75.00), but in no event

Shall any Commissioner receive in any twelve

(12) month period more than forty-seven

hundred and fifty dollars ($4,750) for services

rendered.

(1) Dockets. The Board shall maintain and

keep in its office all hearing dockets.

(m) Vacancies. If a vacancy shall occur

on the Board tne Board shall within thirty (30)

days appoint a qualified person to fill such a

vacancy until the following municipal election

when @ qualified person shall be elected to serve

for the remainder of the term.

(n) Financing. The Buard shaU finance its

reasonable and necessary expenses by charging

landlords annual registration fees in amounts

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deemed reasonable by the Board. The Board

may direct that all or part of such fees may be

passed through from landlords to tenants and

may establish applicable conditions and

procedures. The Board is also empowered to

request and receive funding when and if

necessary from any available source for its

reasonable and necessary expenses.

(0) Recall. Commissioners may be recalled

in accordance with the provisions of Article XIV

of the Santa Monica Charter.

(p) Staff. The Board shall employ and pay

such staff, including hearing examiners and

inspectors, as may be necessary to perform its

function efficiently in order to fulfil the purpose

of this Article.

(q) Registration. Within sixty (60) days

after the adoption of this Article, the Board

shall require the registration of all controlled

rental units, which shall be re-registered at

times deemed appropriate by the Board. The

initial registration shall include the rent in

effect at the time on the date of the adoption of

this Article, base rent ceiling, the address of the

rental unit, the name and address of the land-

lord, the housing services provided tothe unit, a

Statement indicating all operating cost increases

since the base rent ceiling date, and any other

information deemed relevant by the Board. The

Board shall require the landlord to report

vacancies in the controlled renta] units and

shall make a list of vacant controlled rental!

units available to the public. If the Board, after

the landlord has proper notice and after a

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hearing, determines that a landlord has wilfully

and knowingly failed to register a controlled

rental unit, the Board may authorized the

tenant of such anon-registered controlled rental

unit to withhold all or a portion of the rent for

the unit until such time as the rental unit is

properly registered. After a rental! unit is properly

registered, the Board shall determine what

portion, if any, of the withheld rent is owed to

the landlord for the period in which the rental!

unit was not properly registered. Whether or

not the Board allows such withholding, no

landlord who has failed to register properly

shal at any time increase rents for a controlled

rental unit until such units are properly

registered.

(r) Decontrol. If the average annual

vacancy rate in any Category, classification, or

area of controlled rental units exceeds 5 percent.

the Board is empowered, at its discretion and in

order to achieve the objectives of this Article, to

remove rent controls from such category,

Classification or area. The Board may determine

such categories, classifications, or areas for

purposes of decontrol consistent with the

objectives of this Article. In determining the

vacancy rate for any Category, classification or

area of controlled rental units, the Board shal!

consider all available data and shall conductits

own survey. If units are decontrolled pursuant

to this Subsection, controls shall be reimposed if

the Board finds that the average annual vacancy

rate has thereafter fallen below 5 percent for

such category, classification or area.

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(s) Security Deposits. Any payment or

deposit of money the primary function of which

is to secure the performance of a rental agree-

ment or any part of such agreement, including

an advance payment of rent, shall be placed in

an iiterest bearing account ata federally insured

financial institution until such time as it is

returned to the tenant or entitled to be used by

the landlord. Unless and until the Board enacts

regulations directing that the interest on such

accounts be paid directly to the tenant, the

landlord may either pay such interest directly

to the tenant or use it to offset operating

expenses, in which case the offset shall be a

factor in making individual rent adjustments

under Section 1805. The Board may regulate

the amount and use of security deposits

consistent with the purposes of this Article and

State law.

(t) Removal] of Controlled Unit From Rental

Housing Market.

(1) Any landlord who desires to remove a

controlled rental unit from the rental housing

market by demolition, conversion or other means

is required to obtain a permit from the Board

prior to such removal from the rental housing

market in accordance with rules and regulations

promulgated by the Board. In order to approve

such a permit, the Board is required to find that

the landlord cannot make a fair return by

retaining the controlled rental unit.

(2) Notwithstanding the foregoing provisions

of this Subsection, the Board may approve such

a permit:

A 16

(i) If the Board finds that the controlled

rental unit is uninhabitable and is incapable of

being made habitable in an economically feasible

manner; or

(ii) Ifthe permit is being sought so that the

property may be developed with multifamily

dwelling units and the permit applicant agrees

as a condition of approval, that the units will

not be exempt from the provisions of this

Article pursuant to Section 1801(c) and that at

least 15 percent of the controlled rental units to

be built on the site will be at rents affordable by

persons of low income.

(3) The Housing Element of the General

Plan of the City of Santa Monica shall at al!

times contain a provision that neither the City

Council nor any City agency shall approve an

application for tentative subdivision map or

tentative parcel map for a converted unit until

and unless the applicant first obtains a removal!

permit as required by this Section. This Sub-

section shall not apply to any tentative sub-

division map or tentative parcel map approved

in accordance with Article XX relating to tenant

ownership rights.

(4) The Board shall render its final decision

within one hiundred and twenty (120) days of

the filing of a completed application under this

Section

SECTION 1804. Maximum Allowable

Rents.

(a) Temporary Freeze. Rents shal! not be

increased during the one hundred-twenty

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(120) day period following the date of adoption

of this Article.

(b) Establishment of Base Rent Ceiling.

Beginning one-hundred-twenty (120) days

after the adoption of this Article, no landlord

shal] charge rent for any controlled rental

units in an amount greater than the rent in

effect on the date one year prior to the

adoption of this Article. The rent in effect on

that date is the base rent ceiling and is a

reference point from which fair rents shall be

adjusted upward or downward in accordance

with Section 1805. If there was no rent in effect

on the date one year prior to the adoption of

this Article, the base rent ceiling shal] be the

rent that was charged on the first date that

rent was charged following the date one year

prior to the adoption of this Article.

-(c) Posting. As soon as the landlord is

aware of the maximum allowable rent, the

landlord shall post it for each unit in a

prominent place in or about the affected

controlled rent units. The Board may require

that other information it deems relevant also

be posted. ,

SECTION 1805. Individual and General

Adjustment of Ceilings on Allowable Rents.

(a) GeneralAdjustment. The Board may,

after holding those public hearings prescribed

by Section 1803(g), set and adjust upward or

downward the rent ceiling for all controlled

rental units in genera!) and/or for particylar

Categories of controlled rental units deemed

appropriate by the Board. Such an adjustment,

A 18

however, need not take effect immediately, and

the Board may decide that new rent ceilings

shall not take effect until some reasonable date

after the above-stated time periods.

(b) Annual General Adjustment. Each

year the Board shall generally adjust rents as

follows:

(1) Adjust rents upward by granting land-

lords a utility and tax increase adjustment for

actual increases in the City of Santa Monica for

taxes and utilities. :

(2) Adjust rents upward by granting land-

lords a maintenance increase adjustment for

actual increases in the City of Santa Monica for

maintenance expenses.

(3) Adjust rents downward by requiring

landlords to decrease rents for any actual

decreases in the City of Santa Monica for taxes.

In adjusting rents under this Subsection, the -

Board shall adopt a formula of general

apphlcation.

(c) Petitions. Upon receipt of a petition

by a landiord and/or a tenant, the maximum

rent of individual controlled rental units may be

adjusted upward or downward in accordance

with the procedures set forth elsewhere in this

Section. The petition shall be on the form

provided by the Board and shall include a

declaration by the landlord that the unit meets

all requirements of Section 1805(h). Not-

withstanding any other provision of this Section,

the Board or hearing examiner may refuse to

hold a hearing and/or grant arent adjustment

if an individual hearing has been held and

A 19

decision made with regard to maximum rent

within the previous six (6) months.

(d) Hearing Procedure. The Board shal!

enact rules and regulations governing hearings

and appeals of individual adjustment of ceilings

on allowable rents which shall include the

following:

(1) HearingExaminer. Ahearingexamin-

er appointed by the Board shall conduct a

hearing to act upon the petition for individual

adjustment of ceilings on allowable rents and

shall have the power to administer oaths and

affirmations.

(2) Notice. The Board shall notify the

landlord if the petition was filed by the tenant,

or the tenant, if the petition was filed by the

landlord, of the receipt of such a petition anda

copy thereof. =

(3) Time of Hearing. The hearing officer

shall notify all parties, as to the time, date and

place of the hearing.

(4) Records. The hearing examiner may

require either party to a rent adjustment

hearing to provide it with any books, records

and papers deemed pertinent in addition to

that information contained in registration

Statements. The hearing examiner shall conduct

a current building inspection and/or request

the City to conductacurrent building inspection

if the hearing examiner finds good cause to

believe the Board's current information does

not reflect the current condition of the control-

led rental unit. The tenant may request the

A 20

hearing examiner lo order such an-inspection

prior to the date of the hearing. All documents

required under this Section shall be made

avauable to the parties involved prior to the

hearing at the office of the Board. In cases

where information filed in a petition for rent

ceiling adjustment or in additional submissions

filed at the request of the hearing examiner is

inadequate or false, no action shall be taken on

said petition until the deficiency is remedied.

(5) Open Hearings. All rent ceiling

adjusiment hearings shall be open to the public.

(6) Right of Assistance. All parties to a

hearing may have assistance in presenting

evidence and developing their position from

attorneys, legal workers, recognized tenant

Organization representatives or any other

persons designated by said parties.

(7) HearingRecord. The Buard shall make

available for inspection and copying by any

person an official record which shall constitute

the exclusive record for decision on the issues

at the hearing. The record of the hearing, or any

part on one, shall! be obtainable for the cost of

copying. The record of the hearing shall include:

all exhibits, papers and documents required tu

be filed or accepted into evidence during the

proceedings; a list of participants present; a

summary of all testimony accepted in the

proceedings; a statement of ali materials officially

noticed; all recommended decisions; orders

and/or rulings; all final decisions, orders and/or

rulings, and the reasons for each final decision,

order and/or ruling. Any party may have the

A 2]

proceeding tape recorded or otherwise tran-

scribed at his or own expense.

(8) Quantum of Proof and Notice of

Decision. No individual adjustment shall be

granted unless supported by the preponderance

of the evidence submitted at the hearing. All

parties to a hearing shall be sent a notice of the

decision and a copy of the findings of face and

law upon which said decision is based. At the same

time, parties to the proceeding shall also be

notified of their right to any appeal allowed by

the Board and/or to judicial review of the

decision pursuant to this Section and Section

1808 of this Article.

(9) Consolidation. All! landlord petitions

pertaining Lo tenants in the same building wil!

be consolidated for hearing, and all petitions

filed by tenants occupying the same building

shall be consolidated for hearing unless there is

a showing of good Cause not to consolidate such

petitions.

(10) Appeal. Any person agrieved by the

decision of the hearing examiner may appeal to

the Board. On appeal, the Board shal) affirm,

reverse or modify the decision. of the hearing

examiner. The Board may conduct a de novo

hearing or may act on the basis of the record

before the hearing examiner without holding a

hearing.

(11) Finality of Decision. The decision of

the hearing examiner shall be the final decision

of the Board in the event of no appeal! to the

Board. The decision of the hearing examiner

Shall not be stayed pending appeal; however, in

A 22

the event that the Board on appeal reverses or

modifies the decision of the hearing examiner,

the landlord. in the case of an upward adjust-

ment in rent, or the tenant, in the case of a

downward adjustment of rent, shall be ordered

to make retroactive payments to restore the

parties to the position they would have occu-

pied had the hearing examiner's decision been

the same as that of the Board.

(12) Time for Decision. The rules and

regulations adopted by the Board shall provide

for final action on any individual rent adjustment

petition within one hundred and twenty (120)

days, following the date of filing of the individual

rent adjustment petition.

(13) Board Action in Lieu of Reference to

Hearing Examiner. The Board, on its own

motion or on the request of any landlord or

tenant, may hold a hearing on an individual

petition for rent adjustment without the petition

first being heard by a hearing exarainer. |

(14) Decisions decreasing rents shall remain

in effect until the Board finds that the landlord

has corrected the defect warranting the de-

crease. The Board shall, by regulation, establish

procedures for making prompt compliance deter-

minations. Upon a determination of compliance

the landlord shall be entitled to reinstatement

of the prior rent level. retroactive to the date

that the landlord corrected the defect which

warranted the decrease.

(e¢) In making individual! and genera! ad-

justment of the rent ceiling, the Buard shall

A 23

consider the purposes of this Article and the

requirements of law. The Board may adopt as

its fair return standard any lawtu! formula,

including but not limited to one based on

investment or net operating income. The Board

shall consider all factors relevant to the formula

it employs; such factors may include: increases

or decreases in operating and maintenance

expenses, the extent of utilities paid by the

landlord, necessary and reasonable capital

improvement of the controlled rental unit as

distinguished from normal! repair, replacement

and maintenance, increases or decreases in

living space, furniture, furnishings, equipment,

or services, substantial deterioration of the

controlled rental unit other than as a result of

ordinary wear and tear, failure on the part of

the landlord to provide adequate housing ser-

vices or to comply substantially with applicable

housing, health and safety codes, Federal and

State income tax benefits, the speculative nature

of the investment, whether or not the property

was acquired or is held as a Jong term or short

term investment, the landlord's rate of return

on investment, the landlord's current and base

date Net Operating Income, and any other

factor deemed relevant by the Board in providing

the landlord a fair return.

(f) No rent increase shal! be authorized by

this Article because a landlord has a negative

cash flow as the result of refinancing the con-

trolled rental unit if at the time the landlord

refinanced the landlord could reasonably have

foreseen a negative cash flow based on the rent

A 24

schedule then in existence within the one year

period following refinancing. This paragraph

shall only apply to that portion of the negative

cash flow reasonably foreseeable within the one

year period following refinancing of the con-

trolled rental unit and shal! only apply to

controlled rental units refinanced after the

date of adoption of this Article.

(g) No rent increase shall be authorized by

this Article because a landlord has a negative

cash flow if at the time the landlord acquired

the controlled rental unit, the landlord could

reasonably have foreseen a negative cash flow

based on the rent schedule then in existence

within the one year period following acquisition.

This paragraph shal! only apply to that portion

of the negative cash flow reasonably foreseeable

within the one year period following acquisition

of a controlled rental unit and shall only apply

to controlled rental units acquired alter tne

date of adoption of this Article.

(h) No landlord shal! increase rent under

this Article if the landlord:

(1) Has failed to comply with any provision

of this Article and/or regulations issued

thereunder by the Board, including the pro-

visions requiring the payment of registration

fees and registration penaltics.

(2) Has failed to comply substantially with

any applicable State or loca! housing, health or

safety law. No landlord shal! increase rent

unless the notice increasing rent contains a

Statement in substantially the following form:

“The undersigned (landlord) certifies that this

A 25

unit and common areas are not subject to any

uncorrected citation or notices of violation of

any State or local housing health, or safety laws

issued by any goverment official or agency.” Ifa

landlord fails to comply with this Subsection,

the tenant may refuse to pay the improperly

noticed increase, may seek administrative or

civil remedies under this Article, and may raise

the landlord’s noncompliance as an affirmative

defense in any resulting unlawTul detainer action.

(i) The Board may, in its discretion, enact

regulations to provide for increases of rents on

units voluntarily vacated after the effective

date of this Subsection in properties where the

landiord has dedicated a percentage of units to

be rented to persons of very low or low income

at affordable rents. The Board may enact

procedures and other regulations governing

determination of the conditions upon which

such increases will be permitted, the extent of

the increases, the required mix of affordable

units to be provided, ways to ensure the con-

tinued provision of affurdable housing under

this Subsection, the terms and conditions

applicable when landlords cease to participate

or when tenants vacate or cease to qualify for

units dedicated to affordable housing, and other

measures it deems necessary.

If the Board enacts regulations under this

Subsection, its shall provide for the following:

(1) That a property shall not be eligible for

this program unless a specified percentage of al

units on the property, no less than 16 percent,

will be occupied by tenants of very low or low

A 26

income and the rent on each unit so occupied

does not exceed a specified percentage, no

greater than 30 percent, of such tenants’ income.

(2) That tenants of very low or low income

occupying units maintained at affordable rent

levels under this program are protected if the

landlord elects not to participate further in the

program. Such protection shall include, at a

minimum, a provision prohibiting the rent of

such tenants from being increased by a

percentage greater than the general annual

adjustment allowed by the Board even if the

resulting rent is below the maximum allowable

rent and the landlord has lowered the rent for

other units on the property.

SECTION 1806. Eviction. Nolandlord shall

take action to terminate any tenancy including

service of any notice to quit or other eviction

notice or bring any action to recover possession

or be granted recovery of possession of a

controlled rental unit unless:

(a) The tenant has failed to pay the rent to

which the landlord is entitled under the rental

housing agreement and this Article.’

(b) Thetenant has violated an obligation or

covenant of his or her tenancy other than the

obligation to Surrender possession upon proper

notice and has failed to cure such violation after

having received written notice thereof from the

landlord in the manner required by law.

(c) The tenant is committing or expressly

permitting a nuisance in, or is Causing Substantial

damage to, the controlled rental unit, or is

creating a substantial interference with the

A 27

comfort, safety, or enjoyment of the landlord or

other occupants or neighbors of the same.

(d) The tenant is convicted of using or

expressly permitting a controlled rental unit to

be used for any Ulegal purpose.

(e) The tenant, who had a rental housing

agreement which had terminated, has refused,

after written request or demand by the landlord,

to execute a written extension or renewal

thereof for a further term of like duration and in

such terms as are not inconsistent with or

violative of any provisions of this Article and are

materially the same as in the previous agreement.

(f) The tenant has refused the landlord

reasonable access to the controlled rental unit

for the purposes of making necessary repairs or

improvements required by the laws of the

United States, the State of California or any

subdivision thereof, or for the purpose of showing

the rental housing to any prospective purchaser

or mortgagee.

(g) The tenant holding at the end of the

term of the rental housing agreement is a sub-

tenant not approved by the landlord.

(h) Thelandlord seeks to recover possession

in good faith for use and occupancy by herself

or himself, or her or his children, parents,

grandparents, brother, sister, father-in-law,

mother-in-law, son-in-law, or daughter-in-law.

For purposes of evictions under this Subsection:

(1) A “landlord” shall be defined as a

Natural person who has at least a fifty (50)

pervent Ownership interest in the property.

A 28

(2) No eviction may take place if any land-

lord or enumerated relative already occupies

one unit on the property, or ifa vacancy already

exists On the property and the vacant unit is

comparable to the unit for which eviction is

sought. Where the vacant unit is determined

not to be comparable, thereby permitting

eviction under this Subsection, the evicted

tenant or tenants shall be first given the right to

ovcupy the vacant unit and the rent thereof

shall be the lesser of the maximum allowable

rent for the vacant unit and the maximum

allowable rent of the unit from which the tenant

or tenants are evicted. The Rent Control Board

Shall promulgate regulations defining when

a unit is comparable for purposes of this

paragraph.

(3) The notice terminating tenancy shal

contain the name, address and relationship to

the landlord of the person intended to occupy.

(4) The landlord or enumerated relative

must intend in good faith to move into the unit

within thirty (30) days after the tenant vacates

and to occupy the unit as a primary residence

for at least one year. The Board may adopt

regulations governing the determination of good

faith.

(5) If the landlord or relative specified on

the notice terminating tenancy fails to occupy

the unit within thirty (30) days after the tenant

vacates, the landlord shall:

(i) Offer the unit to the tenant who vacated

it.

(ii) Pay to said tenant all reasonable ex-

penses incurred in moving to and/or from the

unit.

(6) No eviction pursuant to this Subsection

Shall be allowed in any condominium or stock

cooperative unit which has been converted

from an apartment or other rental unit after

April 10, 1979, unless the Rent Control Board

has issued a removal permit or declared a

vested right for said unit. As used in this

subpart, a unit shal] be deemed converted after

April 10, 1979, ifon April 10,1979 the recorded

tract map or parcel map for the property

showed the unit as included in the property.

(i) The landlord seeks to recover possession

to demolish or otherwise remove the controlled

rental unit from rental] residentia! housing use

- after having obtained all proper permits from

the City of Santa Monica

Notwithstanding the above provisions, pos-

session shall not be granted if it is determined

that the eviction is in retaliation for the tenant

reporting violations of this Article, for exercising

rights granted under this Article, including the

right to withhold rent upon authorization of the

Board under Section 1803(q) or Section 1809 or

for organization other tenants. In any notice

purporting to terminate tenancy the landlord

shall state the cause for the termination, and in

any action brought to recover possession of a

controlied renta) unit, the landlord shall allege

and prove compliance with this Section.

Any violation of this Section shall render the

landlord liable to the tenant in a civiJ action for

A 30

actual and punitive damages. The prevailing

party in an action based upon this Section shal!

recover COSLts and attorneys fees.

SECTION 1807. Non-Waiverability. Any

provision, whether oral or written, in or

pertaining to a rental housing agreement

whereby any provision of this Article for the

benefit of the tenant is waived, shal! be

deemed to be against public policy and shall

be void.

SECTION 1808. Judicial Review. A land-

lord or tenant aggrieved by any action or

decision of the Board may seek judicial review

by appealing to the appropriate court within

the jurisdiction.

SECTION 1809. Civil Remedies.

(a) Any landlord who demands, accepts,

receives, or retains any payment of rent in

excess of the maximum lawful rent, in violation

of the provisions of this Article or any rule,

regulation or order hereunder promulgated,

including the provisions ensuring compliance

with habitability standards and registration fee

requirements, shall be liable in a civil action to

the tenant from whom such payments are

demanded, accepted, received or retained, for

reasonable attorney's fees and costs as de-

termined by the court, plus damages in the

amount by which the payment or payments

demanded, accepted, received or retained

exceeds the maximum lawful rent. Acivil penalty

of treble the amount by which the payment or

A 3]

payments demanded, accepted, received or

retained exceeds the maximum lawful rent

Shall be awarded against the landlord upon a

showing that the landlord has acted willfully or

with oppression, fraud or malice. No ad-

ministrative remedy need be exhausted prior to

filing suit pursuant to this Subsection.

(b) In lieu of filing a civil action, a tenant

may file an administrative complaint. The Board

shall establish by rule and regulation a hearing

procedure similar to that set forth in Section

1805(d).

(1) The rules and regulations adopted by

the Board shall provide for fina] Board action

On any complaint for excess rent within one

hundred and twenty (120) days following the

date of filing of the complaint.

(2) In any administrative hearing under

this Section, a landlord who demands, accepts,

receives Or retains any payment of rent in

excess of the maximum lawful rent shall be

liable for damages in the amount by which the

payment OF payments demanded, accepted,

received or retained exceeds the maximum

lawful rent and may be liable for an additiona!

amount not to exceed five hundred dollars

($500.00), for costs, expenses incurred in

pursuing the hearing remedy, damages and

penalties. The tenant shall bear the burden o:

proving entitlement to the penalty. The tenant

may deduct the penalty and award of damages

from future rent payments in the manner

provided by the Board. An order authorizing

rent withholding under this Article shall survive

A 32

the sale or other transfer of the property and

shall be binding upon successors of the landlord

against whom the order was made. If a tenant

authorized to withhold rent under this Article

vacates the property, the landlord shal! pay to

such tenant a sum equal to the balance of the

rent that the tenant could have withheld.

(c) Ifthe tenant from whom such excessive

payment is demanded, accepted, received or

retained in violation of the foregoing provisions

of this Article or any rule or regulation or order

hereunder promulgated fails to bring a civil or

administrative action as provided for in Section

1809 (a) and 1809 (b) within one hundred and

wenty (120) days from the date of occurrence

of the violation, the Board may settle the claim

arising out of the violatibn or bring such action.

Thereafter, the tenant on whose behalf the

Board acted is barred from also bringing an

action against the landlord in regard to the

same violation for which the Board has made a

settlement or brought action. In the event the

Board settles said claim, it shall be entitled to

retain the costs it incurred in settlement thereof,

and the tenant against whom the violation has

been committed shall be entitled to the

remainder.

(d) The appropriate court in the jurisdiction

in which the controlled rental unit affected is

located shall have jurisdiction over al) actions

brought under this Section.

A 33

SECTION 1810. Criminal Remedies. Any

landlord violating this Article shall be guilty of

a misdemeanor. Any person convicted of a

misdemeanor under the provisions of this

Article shall be punished by a fines: of not more

than five hundred ($500.00) dollars or by

imprisonment in the county jail for a period not

exceeding six months, or by both such fine and

imprisonment.

SECTION 1811. Injunctive and Other Civil

Relief. The Board; and tenants and landlords

of controlled units, may seek relief from the

appropriate court within the jurisdiction within

which the affected controlled rental! unit is

located to enforce any provision of this Article

Or its implementing regulations or to restrain or

enjoin any violation of this Article and of the

rules, regulations, orders and decisions of the

Board.

SECTION 1812. Partial Invalidity. If any

provision of this Article or application

thereof to any person or circumstances is

held invalid, this invalidity shall not affect

other provisions or applications of this

Article which can be given effect without

the invalid provision or application, and to

this end the provisions of this Article are

declared to be severable. This Article shall

be liberally construed to achieve the pur-

poses of this Article and to preserve its

validity.

A 34

SECTION 1813. Relationship to Article

XX. Section 1803(1) of this Article shall not

apply to any building for which approval has

been received pursuant to Article XX (Tenant

Ownership Rights Charter Amendments) of

this Charter. All other provisions of this Article,

however, shall continue to apply with full force

and effect to each unit in any building receiving

approval! pursuant to Article XX.

Tenants residing in such units, whether or

not “qualifying,” “participating,” or any other

such designation under Article XX, shall enjoy

all the rights and remedies provided by this

Article without limitation as to duration or to

ownership of the unit. This Section is declarative

of existing law and does not impose any new

requirements or limit any existing ones.

SECTION 1814. Existing Board Prac-

tices. To the extent that the amendments to

Articie XVIII adopted at the same time as this

Section incorporate rules, regulations and

practices of the Rent Control] Board existing on

the date of the adoption hereof, this amendment

is declarative of existing law and does not

Impose any New requirements of luuit any

EXISLINY Ones. .

SECTION 1815. Sing!te Family Homes.

Single family homes that were not used for

residential rental purposes on July 1, 1984 are

automatically exempt from the provisions of

this Article. Single family homes that are not

exempt under the preceding sentence are subject

to all requirements of this Article, but shall be

permanently exempted by the Board upon

proof that the home has been continuously

A 35

occupied by the owner for a period of two (2)

years as a principle place of residence after

voluntary vacancy by the tenant or lawful

eviction of the tenant. An owner may have only

one exemption under this Section at any one

time.

- SECTION 1820. State Owned Property.

This Article shal] not apply to any property

which is part of the State Park System or

sovereign tidelands and owned by the State

of California on July 1, 1990.

CHAPTER 2

DEFINITIONS

2000. The following words or phrases, as

used in the Rent Control Charter Amendment

or these Regulations shall have the follow-

ing meanings:

2001. Owner-Occupied Dwellings

For the purposes of determining exemptions

for owner-occupancy under §180l(c)(4) of

the Rent Control Charter Amendment:

(a) An owner-occupant must occupy the

housing unit in good faith, as

the principal place of residence.

(b) No corporation, trust, partner-

ship, or association can be

considered an owner-occupant.

(c) A person may be considered an

owner-occupant only if said

person owns at least a 50%

interest in the property.

(d) The dwelling must contain no more

than three units on one legal

parcel, including units contained

in separate buildings on the same

parcel.

2004. Privileges as Housing Services and

Material Terms

As defined in subsection 1801(d) of the

Rent Control Law, the etrm "housing

service" includes "any .. . privilege .

. . connected with the use or occupancy of

any rental unit." Such privileges include,

but are not limited to, the following:

a. The right to have roommates;

b. The right to have overnight

guests;

c. The right to have pets.

Reduction of such services may be grounds

for a rent decrease pursuant to subsection

1805(e) of the Rent Control Law and Chapter

4 of these Regulations. In addition, such

housing services shall be considered

material terms of any rental housing agree-

ment for the purposes of subsection 1806(e)

of the Rent Control Law.

[2004 Adopted 6/1/89; Effective 6/10/89]

[Chapter 2 Adopted 11/29/79; Effective

12/4/79)

B 38

CHAPTER 9.

EVICTIONS

9000. Scope of Regulations.

These regulations are designed to implement

and clarify the just cause eviction

requirements of §1806 of the Santa Monica

City Charter. The authority for promulga-

tion of these regulations derives from

§1803(g) of the Santa Monica City Charter.

[9002] (3). A landlord shall not attempt

to recover possession of a unit pur-

Suant to Section 1806(h) where there

is a comparable unit occupied by a

tenant who moved onto the property

where the unit is located more

recently than the tenant from whom

the landlord seeks to recover

possession. For purposes of this

provision, “comparable unit" shall

mean a unit of the same number of

bedrooms, with substantially the

same amenities and housing services,

and with square footage that varies

no more than fifteen percent (15%)

from the unit for which the landlord

_is attempting to recover possession.

[9002(j) Adopted 6/1/89; Effective

6/10/89)

9007. No tenancy may be terminated for

violation of a covenant of a rental agree-

ment, other than the covenant to pay the

lawful rent, unless that covenant was the

result of an express agreement between the

landlord and tenant. An express agreement

must be in writing, signed by both parties

and the tenant must have knowingly

consented to the change. A landlord may

not unilaterally change the terms of

tenancy under Civil Code §827 and then

evict the tenant for violation of the added

covenant unless the tenant has agreed in

writing to the additional covenant.

[Chapter 9 Amended 4/13/89; Effective

4/23/89)