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CC - CONSENT ITEM: (1) Receipt of Progress Report on the Status of Implementation of the Rent Control and Tenant Protections Ordinances (“Program”); (2) Approval of an Amendment to the Existing Professional Services Agreement with BAE Urban Economics in an Amount Not-to-Exceed $63,195 for Implementation and Support Services Related to the Program; (3) Approval of an Amendment to the Existing Professional Services Agreement with Tripepi Smith and Associates in an Amount Not-to-Exceed $32,610 for Public Communications Support for the Program; (4) Approval of an Amendment to the Existing Professional Services Agreement with HdL in an Amount Not-to-Exceed $110,000 for Maintenance of the Rental Unit Registration System; and (5) Approval of an Amendment to the Existing Professional Services Agreement with Bet Tzedek in an Amount Not-to-Exceed $148,736 for Legal Services Related to Landlord-Tenant and Other Housing Issues to Culver City Residents.
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Meeting Date: June 26, 2023
Contact Person/Dept.: Shannon Louis/Housing and Human Services
Phone Number: (310) 948-2268
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: ((E-Mail) Meetings and Agendas - City Council (06/22/2023) ; Landlord Tenant Mediation Board (06/13/2023); and Advisory Committee on Housing and Homelessness (06/20/2023)
Department Approval: Tevis Barnes, Housing and Human Services Director (06/10/2023)
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RECOMMENDATION
Staff recommends the City Council:
1) Receive a progress report on the status of implementation of the Rent Control and Tenant Protections Ordinances; and,
2) Approve an amendment to the existing professional services agreement with BAE Urban Economics to include the development of guidelines, procedures, and additional materials to implement the processes related to No Fault Evictions with consideration of State SB 8 requirements, finalize a Staff Handbook, and provide ongoing petition, application, and form support in an amount not to exceed $63,195; and,
3) Approve an amendment to the existing professional services agreement with Tripepi Smith and Associates (TSA) to continue the public communications program for the Rent Control and Tenant Protections Ordinances in an amount not-to-exceed $32,610; and,
4) Approve an amendment to the existing professional services agreement with HdL to continue maintenance of the online residential rental registration system and education and compliance services in an amount not-to-exceed $110,000; and,
5) Approve an amendment to the existing professional services agreement with Bet Tzedek to continue providing legal services related to landlord-tenant and other housing issues to Culver City residents in an amount not-to-exceed $148,736.
BACKGROUND
The City’s Rent Control and Tenant Protection Ordinances went into effect on October 30, 2020, permanently establishing rent control and tenant protections in the City (collectively, “Ordinance”). On May 24, 2021, the City Council approved an annual registration fee of $167 per residential rental unit to cover the reasonable costs associated with administering the Rent Control and Tenant Protections Program (Program).
DISCUSSION
Rent Control and Tenant Protections Program Progress
Over the past fiscal year, the Housing and Human Services (HHS) Department has made significant progress in the implementation of the Program. During the past 12 months, Program staff has received a total of 2,973 inquiries via calls, emails, and walk-ins from the public with evictions, rent increases, and untenantable conditions serving as the leading topics of interest. There have been two Petitions for Noncompliance, two Applications for Rent Adjustments, and two Capital Improvement Pass-Through Applications filed this fiscal year. The Program is currently at 81% compliance with respect to rent registrations and staff has actively consulted with its vendors, HdL and TSA, to increase compliance and awareness of the registration requirements in the City. In addition to coordinating with HdL and TSA on registration matters, staff has worked with the consultants who will be discussed in this report to implement the remaining Program and Ordinance requirements.
Guidelines and Procedures Development: BAE Urban Economics (BAE)
The City retained the services of BAE Urban Economics (BAE) in July 2019 to conduct a rent study for the Interim Rent Control Ordinance (IRCO). The City has continued to use their services as they are needed to complete the full establishment and implementation of the Ordinances.
Staff continues to work with BAE to develop written materials in alignment with industry standards and Culver City specific requirements to enforce the provisions of the Ordinances. BAE supports the Program through its research and development of ordinance required materials and processes. In Phase 3 of its work with the City in the implementation of the Ordinances, BAE will be developing guidelines and procedures to support the evaluation of No-Fault Evictions and the application of State law under SB 8 to demolition related evictions, finalizing the administrative handbook identifying operational procedures, and providing ongoing support in evaluating applications for upward or downward rent adjustments. BAE will also review City drafted materials to ensure compliance with the Ordinance and identify any areas requiring research of industry standards where the Ordinance is silent. To continue supporting the Program’s implementation efforts, BAE has proposed a total budget not to exceed $63,195.
Rent Registration - HdL
The Rent Control Ordinance requires each landlord to register with the City each rental unit by July 31 annually, and each unit must be issued a registration certificate. The rent registry allows Culver City to collect rental housing data and better understand the Culver City rental marketplace. The City’s consultant, HdL, is currently responsible for collecting and maintaining rent registry data for the City. To date, 5,287 of the 5,561 total units from the previous year have been registered for the July 31, 2022, registration period, placing the Program at 94% for renewals from the previous registration period and 81% for overall account registrations. There has been $913,738.50 in fees and penalties collected for the same registration period. Staff has continued to collaborate with HdL, to aid in the education and compliance efforts to ensure all non-compliant accounts become compliant. Ongoing discussions between HdL, staff, and the other consultants listed in this staff report are taking place to ensure community awareness of the registration requirements to further drive compliance. Without a robust education and compliance program, it is expected that the compliance rate for the registration requirement will either decrease or remain stagnant. To continue to drive engagement and use of the registration portal, not only for annual registration, but also for changes in ownership or tenancies, HdL has proposed a total budget not to exceed $110,000.
Public Outreach and Communications - Tripepi Smith and Associates (TSA)
Staff continues to work with TSA, the City’s communications consultant, to engage extensively with the community and create written educational materials to publicize the passage and requirements of the Ordinance. To highlight, over this past fiscal year, a mailer dedicated to tenant protections for City tenants was released in alignment with the anticipated end to LA County’s COVID-19 Tenant Protections Resolution, the website was updated with even more pertinent information to further increase the public’s understanding of the Ordinance requirements and ease navigation and access to information, and a decision tree was created to help renters understand their options related to rent increases. Staff and TSA have developed an education, outreach, and community engagement plan in response to frequently asked questions and knowledge gaps that have come up from the public. Since July 2021, TSA has provided information to the public via targeted social media ads, mailers, decisions trees for clarity around allowable rent increases and just cause evictions, regular website maintenance and updates, and press releases in alignment with larger tenant protection matters. TSA will continue to provide publicity around the Ordinance in the upcoming fiscal year promoting information through a mailer, three press releases, an animated video, social media blasts, and website updates. TSA has proposed a total budget not to exceed $32,610 for its work on the proposed community engagement plan. This budget includes $14,320 in TSA labor costs, and $18,290 in pass-through costs (such as video, postage, and printing costs).
Bet Tzedek - Legal Services
Since the passage of the IRCO, and with the adoption of the permanent Ordinances, HHS regularly receives inquiries related to landlord/tenant rights and responsibilities under California law and Federal Fair Housing law. Since these require interpretation of State and other laws, staff continues to refer inquiries to Bet Tzedek that are outside the scope of services provided by the City, such as legal advice on violations of state and federal housing law. Bet Tzedek is a private, non-profit organization offering a variety of legal services, in Los Angeles County, and specifically provides dedicated legal services to Culver City residents, including and up to full legal representation. The City’s contract with Bet Tzedek designates a full-time attorney who is knowledgeable about California landlord/tenant law, Federal Fair Housing law, and Culver City Rent Control and Tenant Protections Ordinances, to assist Culver City residents. Bet Tzedek’s contract also allows Culver City residents to contact them through a dedicated hotline and email address to obtain legal support.
Over the past fiscal year, Bet Tzedek has taken 109 cases, 17 of which resulted in, or are pending, full scope representation in state court, and the remainder providing either advice and counsel or limited scope representation on housing matters. Bet Tzedek continues to hold Housing Clinics weekly, and have held 48 this fiscal year, where residents can complete an intake and receive legal counseling and advice for their own unique housing issues. In addition, Bet Tzedek has continued conducting educational outreach to Culver City residents to ensure clarity of their rights and responsibilities under the Ordinances, including Know Your Rights workshops. The amount required to extend the contract with Bet Tzedek for the next fiscal year to maintain dedicated legal service for Culver City residents is not-to-exceed $148,736.
FISCAL ANALYSIS
A fee study was completed at the inception of the Program to ensure that all Program costs would be supported with revenue generated through the collection of the rent registration fee, which is currently set at $167 per covered unit. Staff is using 5,287, the current number of compliant units, to estimate the revenue for Fiscal Year 2023/2024 at $882,929. As more units come into compliance, this number will be adjusted. The Adopted Budget for Fiscal Year 2023/2024 includes sufficient funding in Account Nos. 10135400.619800 (Rent Stabilization - Other Contractual Services) and 10135400.611600 (Rent Stabilization - Legal Services Miscellaneous) to support the amendments included in this report.
ATTACHMENTS
None.
MOTION
That the City Council:
1. Receive a progress report on the status of the implementation of the Rent Control and Tenant Protection Ordinances;
2. Approve an amendment to the existing professional services agreement with BAE Urban Economics to include the development of guidelines, procedures, and related materials to implement the processes related to No Fault Evictions with consideration of State SB 8 requirements, finalize Staff Handbook, and provide ongoing petition, application, and form support in an amount not-to-exceed $63,195; and,
3. Approve an amendment to the existing professional services agreement with Tripepi Smith and Associates (TSA) to continue a public communications program for the Rent Control and Tenant Protections Ordinances in an amount not-to-exceed $32,610; and
4. Approve an amendment to the existing professional services agreement with HdL to continue maintenance of the online residential rental registration system and education and compliance services in an amount not-to-exceed $110,000; and,
5. Approve an amendment to the existing professional services agreement with Bet Tzedek to continue providing legal services to Culver City residents in an amount not-to-exceed $148,736; and,
6. Authorize the City Attorney to review/prepare necessary documents; and,
7. Authorize the City Manager to execute such documents on behalf of the City