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CC - ACTION ITEM: (1) Discussion and Direction Regarding Potential Extension of the Rent Registration Deadline by 90 Days from its Original Deadline of July 31, 2023 to October 29, 2023; (2) Direction to Staff to Return to Council with a Report on the Feasibility of Updating the Required Information Property Owners Must Submit to Comply with the Rent Registration Requirements of Culver City Municipal Code Section 15.09.230; and (3) Other Direction to the City Manager as Deemed Appropriate.
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Meeting Date: July 10, 2023
Contact Person/Dept.: Shannon Louis, Rent Stabilization Coordinator
Phone Number: 310-253-5787
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X]
Public Notification: (Email) Meetings and Agendas-City Council and Housing (07/10/2023); Landlord Tenant Mediation Board (07/06/2023); and Advisory Committee on Housing and Homelessness (07/06/2023) (E-Mail) Meetings and Agendas - City Council (07/06/2023)
Department Approval: Tevis Barnes, Housing and Human Services Director (07/03/2023)
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RECOMMENDATION
Staff recommends the City Council (1) discuss and provide direction on a potential extension of the rent registration deadline by 90 days, from its original deadline of July 31, 2023 to October 29, 2023; (2) provide direction to staff to report back on the feasibility of updating the required information property owners must submit to comply with the rent registration requirements of Culver City Municipal Code (CCMC) Section 15.09.230; and (3) provide other direction to the City Manager as deemed appropriate.
BACKGROUND/DISCUSSION
On September 29, 2020, the City Council adopted Ordinance No. 2020-14 and Ordinance No. 2020-15, which amended CCMC Chapter 15.09 to add two new subchapters establishing permanent residential rent control and tenant protections. CCMC Section 15.09.230 sets forth the requirements for registering all rental units with the City, including authority for the City to establish a fee for the registration of rental units intended to recover the City’s reasonable costs associated with the administration and enforcement of the City’s residential rent control program and tenant protections. The details of these provisions are discussed below.
At its May 24, 2021, meeting, City Council approved an annual registration fee of $167 per residential rental unit, as well as fees for late payment, failure to register, and change in rental property ownership with the initial rent registration fee due July 31, 2021, and every July thereafter. The initial July 31, 2021, deadline was subsequently extended to March 31, 2022, to provide relief to rental property owners due to the COVID-19 pandemic.
On March 31, 2022, the initial rent registration became due, which allowed property owners to pass through up to 50% of the costs of the initial fee ($167) to affected tenants, followed by a second registration deadline on July 31, 2022, covering the 2022-2023 registration period. The next registration deadline is set to occur on July 31, 2023.
At its June 26, 2023, meeting, Council requested that a discussion be placed on the July 10, 2023, agenda to address a potential 90-day extension of the 2023-2024 rent registration deadline to allow time for staff to research the information collected and housed within the rent registry and potential options for the collection of information going forward.
Culver City rental property owners are required to register and re-register their rental units and pay the $167 per unit rental registration fee on an annual basis. Property owners have registered their rental units and renewed their registration certificates with the City on three occasions: by August 12, 2019 - while the Interim Rent Control Ordinance was effective, on March 31, 2022, and July 31, 2022. During the Interim Rent Control Program, 5,789 residential rental units were registered with the City. Under the permanent Rent Control and Tenant Protections Program, 5,561 units were registered during the initial rent registration period due March 31, 2022, followed by 5,478 units registered during the 2022-2023 registration period due July 31, 2022. As of June 26, 2023, a total of 1,203 have been registered for the 2023-2024 registration period, due July 31, 2023.
Per CCMC Section 15.09.230.B, when property owners register their units, the following information is required: (1) property owner contact information, including home and mailing address, email, and phone number; (2) property information such as Assessor Parcel Number (APN), certificate of occupancy date or year built, property types; (3) unit information such as address, number of bedrooms and bathrooms, housing services, tenancy start and end date, rent on June 11, 2019 and current rent, Section 8 occupancy status or whether the unit is encumbered by an income or affordable unit restriction; (4) emergency contact information; and (5) authorized agent contact information, when necessary.
Upon registering and submitting the required payment for the associated fees, property owners are issued a rent registration certificate for each unit which contains the landlord’s name, property address, unit number, a certificate number, and an effective and expiration date. The rent registration certificate must be placed in a conspicuous place or served on the tenant, if such conspicuous place does not exist. A property owner may not demand or accept rent until this action has occurred. In addition to confirming and updating registration information annually, property owners are also required to make updates to the registry when there has been a change in tenancy, a change in ownership, and/or a change in housing services, which will trigger the requirement for a new rent registration certificate. Unless a property owner’s account is removed from the system, this information remains in the rent registry.
Some City Council members expressed concern about the information collected/disclosed and received a majority consensus to place an item on the agenda to provide direction to City staff to research this matter further and report back with additional information. If directed by Council to return with a report, City staff will gather additional information which will include a survey of nearby cities including Santa Monica, West Hollywood, Inglewood, Beverly Hills, City of Los Angeles, County of Los Angeles, and other northern and southern California cities to determine what information they collect as part of their rental registration process.
FISCAL ANALYSIS
If approved by City Council, the revenue collection process will be delayed by 90 days.
ATTACHMENTS
None
MOTIONS
That the City Council:
1. Discuss and, if desired, provide direction to extend the rent registration deadline by 90 days from the original deadline of July 31, 2023, to October 29, 2023; and
2. Provide direction to staff to report back on the feasibility of updating the required information property owners must submit to comply with the rent registration requirements of Culver City Municipal Code (CCMC) Section 15.09.230; and
3. Provide other direction to the City Manager as deemed appropriate.