The city of Alameda has voted to prolong a temporary 8-percent cap on rent increases while city staff works on a longer-term proposal.
The council also voted to keep its temporary just-cause eviction requirement in place.
Originally, the council approved the rent cap, along with the just-cause eviction provision, in November, and both were set to expire earlier this month.
This month’s unanimous vote by the council extends both the cap on rent increases and just-cause eviction provision by 60 days. This means actions to terminate a tenancy, such as evictions, are limited to certain “for cause/no fault” reasons, such as failure to pay rent, illegal activity, or the owner going out of the rental housing business.
The moratorium on rent increases over 8 percent applies cumulatively over 12 months, meaning that if a property owner gave an increase of 5 percent four months ago, the owner is limited to a 3 percent increase now.
While this cap remains in effect, city staff will draft a new rent ordinance, which the council hopes to take up Feb. 16.
The council gave staff direction on drafting the ordinance during a marathon meeting that lasted until 4 a.m. Jan. 6. The session included more than 50 speakers, including landlords and a representative from the California Apartment Association.
“Everyone worked overnight, until the early hours of the next morning, to move this issue forward,” Mayor Trish Herrera Spencer said in a statement. “Council continues to act unanimously to reach a fair resolution to this complex, important issue. I applaud our community, council, and staff for their hard work and dedication.”
The council asked staff to draft a new rent ordinance that strengthens rent-review procedures and helps resolve landlord-tenant disputes over rent increases. The city also voted last year to strengthen its mediation program to review rises in rent.
The city envisions its new ordinance require all residential rental property owners to initiate the Rent Review Advisory Committee process when seeking rent increases over 5 percent.
The ordinance also is expected to require binding arbitration should both sides fail to reach agreement. Binding arbitration would only apply to multi-family rental units built before Feb. 1, 1995.
Specifically, the council asked that the ordinance include:
- A requirement that landlords offer tenants an initial one-year lease.
- A limit rent increases to no more than once per year.
- Permission for no-cause evictions with limitations.
- Tenant-relocation assistance for certain types of evictions.
- A requirement that landlords prepare a capital improvement plan and gain approval prior to evicting tenants for substantial rehabilitation.
- The establishment of monetary penalties and enforcement.
- An annual review of the ordinance and a sunset provision.