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CC - ACTION ITEM: (1) Discussion Regarding a Pause on Rent Increases and a Moratorium on Evictions in Response to the Recent Wildfires; and (2) Direction to the City Manager as Deemed Appropriate.
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Meeting Date: March 3, 2025
Contact Person/Dept.: Shannon Louis, Housing and Human Services Department
Phone Number: (310) 253-5787
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (02/26/2025)
Department Approval: Tevis Barnes, Housing and Human Services Director (02/26/2025) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council (1) discuss options related to a pause on rent increases and a moratorium on evictions in response to the recent wildfires; and (2) provide direction to the City Manager as deemed appropriate.
BACKGROUND
On September 29, 2020, the City Council adopted Ordinance No. 2020-14 and Ordinance No. 2020-15, which amended Culver City Municipal Code (CCMC) Chapter 15.09 to establish permanent residential rent control and tenant protections.
CCMC Section 15.09.215 outlines permissible rent increases for covered rental units, including limiting rent increases to no more than 2-5% annually, as determined by the change in Consumer Price Index. CCMC Section 15.09.320.D contains provisions for evictions, allowing landlords to recover possession of a rental unit only for specific For Cause or No Fault reasons.
At its January 27, 2025 meeting, City Council requested that a discussion be placed on the agenda to address a pause on rent increases and a moratorium on evictions to address the recent wildfires.
At its February 24, 2025 meeting, City Council moved the discussion to its March 3, 2025 meeting to await the Los Angeles County (County) Board of Supervisor’s (Board or Supervisors) February 25, 2025 decision on providing an affirmative defense to evictions due to nonpayment of rent for financially impacted tenants related to the recent wildfires.
DISCUSSION
Current Restrictions on Rent
The City’s Rent Control Ordinance (RCO) currently limits rent increases to no more than 2-5% annually, as determined by the change in CPI, for parcels of two or more rental units built on or before February 1, 1995 (covered rental units). The City announces the Maximum Permissible Rent Increase on a monthly basis, which applies to all covered rental units. The most recently announced Maximum Permissible Rent Increase is 3.25% for all increases that will take effect by March 31, 2025. The RCO also specifies that rent cannot be increased more than one time within a 12-month period, unless otherwise approved by the Housing and Human Services Department. Single-family homes, townhomes, and condos are not subject to the City’s RCO except in certain circumstances and depending on specific criteria.
On Jan. 7, 2025, the Governor declared a state of emergency in response to the Palisades and Eaton wildfires, and other wildfires. This declaration activated price gouging protections limiting price increases on goods and services to no more than 10 percent, in most cases. Restrictions on goods and services include but are not limited to, hotel and motel rooms, short-term rentals, and rental housing-including single family homes, condos, and townhomes. Price gouging protections are currently in place through March 8, 2025, and may be extended. Culver City’s maximum permissible rent increase (currently 3.25%) remains in effect.
Current Eviction Protections
The City’s Tenant Protections Ordinance (TPO) outlines a specific set of reasons that a tenancy may be terminated when a tenant has resided in a unit for 12 months or more, which are categorized as For Cause and No Fault. Tenancies that are terminated due to For Cause reasons are those where the following has occurred, generally, at the fault of the tenant: failure to pay rent, breach of the rental agreement, failure to provide reasonable access to the unit, use of the unit to create a nuisance or for an illegal purpose, or the tenant residing in the unit was also the resident manager whose tenancy at the property was a condition of employment that has been terminated. No Fault terminations are due to no cause by the tenant, but instead, the landlord seeking to recover the rental unit for demolition, withdrawing the rental unit(s) from the rental market, a landlord’s or eligible family member’s occupancy, or compliance with a deed restriction or government order. No Fault terminations typically require landlords to provide permanent relocation assistance to affected tenants in the amount of three times the greater of tenant's current monthly rent in effect or the small area fair market rent established by the U.S. Department of Housing and Urban Development (HUD) for a comparable unit in the same ZIP code, plus $1,000.00. There are exceptions to this requirement for small landlords who own three units or fewer recovering a unit for the landlord or eligible family member’s occupancy of the unit.
On February 25, 2025, the Board of Supervisors passed a resolution providing an affirmative defense to evictions due to nonpayment of rent from the Protected Time Period of February 1, 2025 through July 31, 2025 for Qualifying Tenants (Tenants) who have been financially impacted by the recent wildfires. To be eligible for these protections, the Tenant must:
1. Reside in a rental unit or rent a mobilehome from a mobilehome owner;
2. Have resided in their rental unit since before January 7, 2025;
3. Have experienced a “Direct Financial Impact” related to the County Wildfires;
a. “Direct” means the Tenant’s place of employment or business was destroyed or rendered uninhabitable due to the County Wildfires and resulted in actual loss of wages; or the economic impact of the County Wildfires resulted in the Tenant's employer laying them off or reducing their work hours; or a loss of the Tenant's clients who were located in the County Wildfires impacted areas resulting in a loss of income.
b. “Financial Impact” means the Tenant was lost at least 10% of their average monthly household income immediately preceding January 7, 2025, as may be established by pay stubs, payment receipts, letters from employers, or other evidence.
4. Be "Income Eligible," which means their 2024 household income was equal to or less than 150 percent of the Area Median Income as established pursuant to Section 8 of the United States Housing HOA.105191988.14 3 Act of 1937, or as otherwise defined in California Health and Safety Code section 50079.5; and
5. Have begun "Income Replacement Efforts," which means:
a. Enrolling in or applying for a relief program for County Wildfires;
b. Applying for unemployment benefits or other qualifying income assistance program; or
c. Actively seeking employment.
To assert these protections, Tenants must:
1. Self-certify in writing, under penalty of perjury, that they are unable to pay Rent due to Direct Financial Impacts related to the County Wildfires, that they are Income Eligible, and that they have begun Income Replacement Efforts; and
2. Provide the self-certification to their Landlord, or Landlord’s agent, within seven (7) days of each month rent is due, or within seven (7) days after the resolution going into effect for rent due for the month of February 2025.
The County’s Department of Consumer and Business Affairs will also make available a sample self-certification with an attestation that the tenant meets the above requirements.
The resolution does not forgive rent or relieve rent. Tenants must repay their rent within 12 months after the end of the Protected Time Period and are encouraged to make partial payments during the Protected Time Period, if financially able to. However, landlords may not apply any rental payment or rent relief payments to any rental debt other than the prospective month’s rent, unless otherwise agreed upon by the Tenant, in writing.
The resolution is applicable, and provides baseline protections, to incorporated cities. However, Cities may enact greater protections than those provided by the resolution.
Findings from Other Jurisdictions
In response to the wildfires, various cities have proposed or enacted some form of tenant protections to aid in housing displaced individuals and families. While rent freezes have been discussed by other public entities, to date these proposals have been rejected.
Los Angeles County (LA County)
On January 21, 2025, the Board of Supervisors approved a resolution providing eviction protections and relaxing short-term rental restrictions to assist in housing individuals and families displaced by the wildfires. The resolution protects tenants who host unauthorized occupants and pets from eviction due to these reasons until May 31, 2026. Short-term rental hosts were also given permission to list more than one short-term rental, a smaller place, room and vacation rentals as a short-term rental, and offer unlimited stays - formerly a 90-night maximum. These exceptions are only extended when hosting a fire victim. The Board of Supervisors also approved the resolution providing an affirmative defense to evictions due to nonpayment of rent from the Protected Time Period of February 1, 2025 through July 31, 2025 for Qualifying Tenants (described in more detail above).
Los Angeles City (LA City)
On January 14, 2025, the Los Angeles City Council proposed a one-year rent increase moratorium and an eviction moratorium which would be applicable to all apartments in LA City and in place through January 31, 2026. The proposal did not pass.
However, On February 4, 2025, , the LA City Council approved an ordinance to temporarily ban 1) evictions due to unauthorized occupants and pets and 2) rent increases for additional occupants when tenants are hosting additional individuals and families displaced by wildfires. The protections are expected to be in place for one year.
Santa Monica
Santa Monica also decided to temporarily relax their enforcement on short-term rental laws, which otherwise prohibit leases of less than one year. Property owners seeking to list short-term rentals are required to obtain a business license for short-term rentals.
In addition, Santa Monica has banned evictions during the specified emergency period due to unauthorized pets and occupants. The eviction ban is extended to tenancies where an occupant or pet has been displaced due to wildfire evacuations or poor air quality.
Beverly Hills
On January 16, 2025, Beverly Hills adopted an urgency ordinance temporarily suspending restrictions on short-term rentals to allow units to be rented to individuals and families displaced by the wildfires through April 16, 2025 (90 days). In order to be eligible for these protections, Beverly Hills is requiring that 1) at least one tenant be displaced as a result of the wildfires; and 2) the displaced tenant lives in an area that is currently under an evacuation order or warning or that they live in an area that was previously under an evacuation order and is unable to return to their home. Property owners must also disclose that the rental is only allowed to be rented to households displaced by the wildfires. As is the case in Santa Monica, property owners are required to register their rentals.
West Hollywood
On January 21, 2025, West Hollywood adopted an urgency ordinance providing exceptions to rental restrictions, which includes a suspension of one year lease term minimums and authorization to hotels and motels to house tenants displaced by wildfires for more than 30 days without the creation of a tenancy. For property owners exercising the one-year lease agreement exception, the lease terms must be a minimum of 30 days and less than one year. These tenancies also may be subject to the West Hollywood’s Rent Stabilization Ordinance. However, hotels and other lodging are not subject to West Hollywood’s Rent Stabilization Ordinance. West Hollywood also elected to waive business license fees and expedite processing of the license applications.
California State
On January 17, 2025, California began prohibiting unlawful detainers in LA County for evictions related to violating lease terms that otherwise prohibit tenants from housing individuals and families displaced by the wildfires through March 8, 2025.
Inquiries
As of early February 2025, the Rent Stabilization and Tenant Protections Program had received approximately 10 inquiries related to price gouging, landlord occupancy evictions, and a waiver of eviction protections for tenants displaced by the wildfires.
FISCAL ANALYSIS
There is no expected fiscal impact on the City’s budget related to this discussion.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Discuss options related to pausing rent increases and establishing a moratorium on evictions in Culver City in response to the recent wildfires; and
2. Provide direction to the City Manager as deemed appropriate.