FILED

'CITY OF OAKLAND
AGENDA REPORT

20D3MAR27 PM12:46

Office of the City Manager

Robert C. Bobb
Community and Economic Development Agency
April 8,2003

TO:
ATTN:
FROM:
DATE:
RE:

OFFICE OF THE CIT'r' CL~RY

O;.:...~L/'~ND
.... I~

AN ORDINANCE AMENDING CHAPTER 8.22 OF THE OAKLAND MUNICIPAL

CODE, RESIDENTIAL RENT ARBITRATION PROGRAM AND EVICTIONS, TO:
1) AMEND PROVISIONS CONCERNING INCREASING RENTS AFTER CERTAIN
TERMINATIONS OF TENANCIES, 2) REMOVE THE RENT PROGRAM SERVICE
FEE FOR INSERTION IN A DIFFERENT PART OF THE MUNICIPAL CODE, AND
3) MAKE OTHER MODIFICATIONS RESULTING FROM THE ENACTMENT OF
THE JUST CAUSE FOR EVICTION ORDINANCE; AND,
AN ORDTI"l"ANCE RECODIFYING THE RENT PROGRAM SERVICE FEE TO A
NEW ARTICLE IN OAKLAND MUNICIPAL CODE CHAPTER 8.22 AND
APPLYING THE FEE TO RESIDENTIAL RENTAL UNITS COVERED BY THE
JUST CAUSE EVICTION ORDINANCE (MEASURE EE) ; AND
AN ORDINANCE CODIFYING MEASURE EE, THE JUST CAUSE FOR
EVICTION ORDINANCE, ADOPTED BY THE ELECTORATE AT THE
MUNICIPAL ELECTION ON NOVEMBER 5, 2002

SUMMARY
This report addresses two key issues and identifies City Council actions required in response to
the passage of Measure EE, the Just Cause for Eviction Initiative (Just Cause). First, it
recommends repeal of certain eviction protections in the Rent Adjustment Ordinance and other
amendments necessitated by Measure EE's passage. Second, it addresses extension of the Rent
Program Service Fee to units covered by Just Cause that were previously exempted from the
Rent Adjustment Ordinance. Revenues collected will fund currently unfunded services
mandated by Just Cause. Additionally, staff asks that Measure EE be codified into the Municipal
Code.
Oakland voters passed an initiative, Measure EE titled "Just Cause for Eviction Ordinance" on
November 5, 2002. Under Civil Code 1946, a tenancy may be terminated by giving the tenant
written notice without requiring a cause. Just Cause creates eviction controls that preclude
eviction without cause for most residential rental units. Just Cause requires that for most
residential rental housing units in Oakland, a landlord may evict only with one of 11 causes
specified in the law. Although Rent Adjustment's rent level protection and Just Cause's eviction
controls were adopted independently of each other, they are interrelated and Just Cause mandates

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April 8, 2003 .

Page No.2

that the Rent Program and the Housing Residential Rent and Relocation Board (hereinafter "Rent
Board") and Rent Program staff assume certain tasks related solely to Just Cause. Additionally,
Measure EE has already generated litigation that is not specifically funded.
The current Rent Ordinance contains provisions designed to regulate rents after an eviction under
Civil Code 1946. These provisions are no longer necessary, with the exception of units covered
by Rent Adjustment but exempt from Just Cause, i.e. rental units in owner occupied 2 and 3 unit
structures, because Just Cause imposes a cause requirement for all evictions from covered units
in Oakland. Staff recommends that the City Council reduce these protections in the Rent
Adjustment Ordinance except for the 2 and 3 unit structures noted above. Staff further
recommends that the protections be limited to receiving and maintaining 1946 day notices and
requiring that the 1946 notices contain the rent charged at the time the notice was given.
The cost savings that would be realized by elimination of these provisions, primarily a savings of
staff time, would partially offset the increased staff time required to implement the provisions of
Just Cause, assigning additional tasks to the Rent Adjustment Program.
FISCAL IMPACT

The funding for Rent Board and Program operations comes exclusively from the $24 service fee
charged to owners of rental units covered under the Rent Ordinance. Staff estimates that about
19,000 units which are not currently covered by the Rent Adjustment Ordinance will be covered
by Just Cause. This represents a substantial increase in the number of units serviced by the Rent
Adjustment Program, with no corresponding increase in funding unless City Council action is
taken. Additionally, units exempt from the Rent Adjustment Program currently use Rent
Program administrative services. For example, such units use Rent Program services when
claiming exemption in response to a tenant petition.
Further, some formerly exempt
condominiums units (subdivided condominium units not yet sold to individual purchasers) were
conditionally recontrolled by recent amendments to Costa-Hawkins by the state legislature; these
condominium units could become exempt again in the future if they are sold to individual
purchasers.
Funding of the Rent Program is through the service fee adopted by the City Council just over one
year ago. It was calculated to fund program activities related to Rent Adjustment only. The Just
Cause initiative imposes unfunded mandates on the City. At present, no funds in the Rent
Adjustment budget are available for implementation of Just Cause especially given the fact that
reduction in staffing will be required during development of the FY 03-05 budget to ensure that
revenues and expenditures are balanced. In particular, the 19,000 units not covered by the Rent
Adjustment Ordinance do not contribute anything towards the funding of Measure EE's
mandated tasks for the Rent Adjustment Program staff and Board. Thus, the City must fund the
costs of implementing Just Cause from asource other than the current Rent Program Service Fee.
Due to present budgetary constraints that limit funding options, staff recommends extension of

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Robert C. Bobb
April 8, 2003

Page No.3

the $24 per unit per year service fee to those units newly covered under Just Cause to fund the
activities mandated by Just Cause.
Extension of the Rent Program Service Fee to units newly covered by Just Cause will generate
new revenues to pay for the unfunded mandates imposed by Just Cause. Staff estimates the new
revenues generated will be approximately $383,000, as follows:
UNITS NEWLY COVERED BY JUST CAUSE
8 000
Section 8 Units
11 000
Costa Hawkins sinp1e familv
19 000
Sub-Total
-3059
Proiected non-comnliance (16.1 %)
15941
Proiected number of units navinQ: fee
$382584
Proiected additional revenue at $24/unit
Staff estimates that the amount of this additional revenue would reasonably approximate the
costs minimally required to establish and provide the services required by Measure EE just for
the 19,000 additional units, if Measure EE were a standalone program.

BACKGROUND
The Rent Adjustment Ordinance (Ordinance) was revised by the City Council in July 2000 and
January 2002, with certain provisions effective July 1, 2002. The 2002 revisions included
imposition of an annual $24 per unit service fee and a number of reports to be filed by property
owners with the Rent Adjustment Program upon and after termination of a tenancy without cause
(Civ.C. 1946). The City Council should be aware that there are significant differences between
Just Cause and the Rent Ordinance in what 'units are covered or not covered by each. Units
covered by Just Cause but not covered by Rent Adjustment are:

Single-family residence units and condominiums (hereinafter "SFR") -- under State law
(Costa-Hawkins), most (about 75%) SFR units are now exempt from rent regulation, but are
covered by Just Cause. State law does not prohibit cities from restricting evictions on rental
units that are otherwise exempt from rent regulation. Staff estimates about half of the 28,000
SFR in Oakland are rented--about 11,000 units in this category;
Section 8 and subsidized units -- the Rent Ordinance exempts Section 8 and other
government subsidized up.its. Just Cause covers Section 8 and other subsidized units, unless
there is a specific state or federal preemption that affects a particular project or form of
subsidy. However, many subsidy programs, including Section 8, already require similar
good causes in order to evict tenants. The Section 8 program reports that there are 8,000
units in this category;
Substantially rehabilitated properties -- the Rent Ordinance exempts substantially
rehabilitated properties. Just Cause covers these properties; and,

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Robert C. Bobb
April 8, 2003 .

Page No.4

The following are exempted by Just Cause but covered by the Rent Program:

New Construction -- the Rent Ordinance exempts new construction completed after January
1, 1983. Just Cause exempts new construction completed after October 14, 1980.

Properties with 3 units or less and one unit owner-occupied. Staff estimates that there are
3,000 units in this category.

KEY ISSUES AND IMPACTS

Summary

In sum, the Just Cause initiative increases program workload. This can be partially offset if the
City Council modifies the Ordinance to eliminate one set of tasks which arguably will be
rendered unnecessary by the Measure EE and may conflict with some provisions of Measure EE
and the proposed Ellis Act Ordinance.
Current Tenant Protections against Unlawful Eviction in Rent Adjustment Ordinance

Under the current Rent Adjustment Ordinance, property owners need give no justification to
terminate a tenancy. Under California law, exclusive of any contractual obligations between the
owner and tenant, any residential tenancy may be terminated by giving a notice pursuant to Civil
Code 1946. This notice is commonly known as a "30 day" notice (but starting January l, 2003,
some notices require 60 days). Such notices have a potential for abuse as a means to evade
application of the Rent Adjustment Ordinance, since a landlord may legally terminate a tenancy
without cause. The covered unit becomes vacant and may then be re-rented to a new tenant at a
rent higher than that permitted by Ordinance.
In order to eliminate this potential for abuse, the Rent Adjustment Ordinance requires property
owners to file mUltiple notices and reports with the Rent Adjustment Program in order to
terminate a tenancy pursuant to Civil Code 1946. These notices were necessary to enforce rent
restriction to a new tenant after the previous tenant was evicted by a Civil Code 1946 notice.
The Rent Adjustment Program is mandated to perform the following tasks after a tenancy has
been terminated by a 1946 notice:

Receive and maintain all Civil Code 1946 notices given to terminate tenancies as public
records with certain safeguards to the privacy of the parties involved. Landlords are
required to include the outgoing tenant's rent in the notice and file the notices with the
Rent Program;

Receive owners' reports of rent charged the new tenant after a 1946 termination of
tenancy;

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April 8, 2003

Page No.5

o Receive owner's reports of the status of occupancy or vacancy of a unit if the unit is not
re-rented within 90 days of the tennination of the tenancy via 1946 notice;
o Receive owners' reports of the status of occupancy or vacancy of a unit within 10 days
after the end of the twelve-month period following a vacancy pursuant to a 1946 notice;
o Prepare and distribute fonn notices for all of the notices required by the Ordinance for
1946 tenninations of tenancies; and,
o

Conduct hearings and possible appeals to detennine if a landlord committed a violation

of the rent restrictions that would entitle a tenant evicted with the 1946 notice to
relocation expenses.

The purpose of the provisions of the OMC cited above is to ensure that 1946 notices to
terminate tenancy are not sham- i.e. given solely to evade the rent restrictions found in the Rent
Adjustment Ordinance. Just Cause makes these provisions superfluous. A landlord now has to
plead and prove just cause in Court in order to terminate a tenancy. Eviction without cause is no
longer possible, except for those units not covered by Just Cause. The complicated regulatory
scheme found in the Rent Adjustment Ordinance is no longer required.
The Rent Adjustment Ordinance requirements related to rent level protections after Civil Code
1946 evictions currently impose a substantial workload on program staff--the additional notices,
administrative work and hearings related to tenninations of tenancy listed above. Repeal of the
superfluous requirements would substantially reduce the program's future workload.
New Tasks Imposed on the Rent Adjustment Program by Just Cause

Under the Just Cause system a landlord is required to state one of the enumerated causes for
evicting the tenant. If the tenant contests the eviction, the landlord must then prove the existence
of the stated cause in court. Other than as stated below, the Just Cause system is enforced
through the courts. The Rent Program is not and, by state law, cannot be involved in the legal
procedures for evictions. Just Cause imposes these new requirements on the Rent Adjustment
Program:

The initiative grants special "protected status" to specified elderly, disabled and'
catastrophically ill tenants. The Rent Board is charged with deciding the validity
of disputed claims of protected status. The Board is required to adopt the
appropriate Rules and Regulations to implement this provision;

In order for an owner to recover possession of a unit of which the owner had
previously obtained possession using his or her own occupancy as the just cause,
the owner must petition the Rent Program for approval and explain why he or she

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Robert C. Bob1;>
April 8, 2003

Page No.6 _

did not take possession of the unit. The Board is mandated to adopt Rules and
Regulations to implement this provision;

The Rent Program is required to accept and decide upon applications by the
owner to extend time for the completion of repairs when a tenant is forced to
vacate on the ground of making repairs/renovation. The Board is mandated to
adopt Rules and Regulations to implement this provision;

The Rent Program is required to receive and maintain as public records all notices
for termination of tenancy, including both 1946 and 3 day notices. Because the
Initiative makes filing of a notice with the Board a prerequisite to eviction in
Court, some form of certification of filing will inevitably be required. For
reasonable access, the notices must be indexed by property address and name of
landlord. The notices must be available to the public during normal business
hours. This is a substantial change from the current Ordinance, which requires
that only 1946 notices be filed with the Rent Program. The current provision has
no impact on the eviction process. Providing secure public access to Rent
Program records is a task that requires allocation of scarce employee/hours;

Under Just Cause, the owner must offer the tenant another unit (if available) when
terminating a tenancy under most circumstances. Disputes about the initial rent
for a replacement unit are to be resolved by the Rent ProgramlBoard;

The Board and the City Attorney are authorized to bring a civil suit for injunctive
relief and treble damages to redress violations of the just cause provisions of the
Initiative. At present, the City Attorney's office may bring suit to enforce the
requirements of the Rent Adjustment Ordinance. The change adds duties to the
Board, and, in consequence, to the Program staff;

As an integral part of the process, the Program staff will be asked by the public to
explain the new Initiative provisions and the Board's role in them. Eviction
notices are required to state that the tenant may contact the Rent Program for
"advice" regarding the eviction. This public information function is always a
major program task; and,

Measure EE has been challenged in court. This lawsuit will involve significant
resources from the City Attorney's Office that will result in taking resources away
from other Rent Program activities.

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Robert C. Bobb
April 8, 2003

Page No.7

SUSTAINABLE OPPORTUNITIES

Social Equity: Elimination of the requirements ofOMC 8.22.130 and 8.22.140 will result in less
paperwork for property owners and enhanced efficiency for both property owners and tenants.
RECOMMENDATION(S) AND RATIONALE

Staff recommends that the City Council amend the Rent Adjustment Ordinance, specifically
OMC 8.22.130 and 8.22.140, to:

Limit the rent protections requiring owners to file a copy of the 30-day notice and
reporting the last rent to the Rent Program. The notices would be kept by the Program as
public records. In either case, no cause eviction protections should be limited only to
those units covered by the Rent Ordinance but exempt from Just Cause-specifically
properties with 3 units or less where one unit is owner-occupied. The advantages to this
course of action would be:

Save staff time in not enforcing unnecessary and superseded Ordinance provisions; and,
Save customers' time by eliminating unnecessary reports.

Staff also recommends an expansion of the Rent Program service fee to include those units .not
covered by Rent Adjustment and newly covered by Just Cause to fund the now unfunded
mandates imposed on the City by Just Cause. The advantage to this action is to provide a source
of funding for the City to meet its legal obligations to implement the Just Cause for Eviction
Initiative Ordinance at a time when no alternative sources of funding exist.
Staff also recommends codification of Measure EE to make it more available to the public and to
better integrate it with the Rent Adjustment Program and related ordinances.

ltem:

---CED Committee

Robert C. Bob,b
April 8, 2003

Page No.8

ACTION REQUESTED OF THE CITY COUNCIL

Staff recommends that the City Council approve the Ordinance repealing sections of OMC
8.22.130 and 8.22.140, the Ordinance codifying Measure EE and adopting the Ordinance
extending the $24 Rent Adjustment Program Service Fee.
Respectfully submitted,

~Ifa

ROBERT C. BOBB
City Manager for the Community
and Economic Development Agency

APPROVED AND FORWARDED TO THE

COMMUNITY AND ECONOMIC
DEVELOPMENT COMMITTEE
Prepared by:
Roy 1. Schweyer, Director
Housing and Community Development
Rick Nemcik-Cruz
Rent Adjustment Manager

Item:

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CED Committee

MAY 1 3~2003

~D-'""t\ "'.'~.. f-'.':l\-..,

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FILED

.. '

OFFICE OF iHE CITY CLERK

Of.KU.ND

2003 MA1i~~oJED ~:~ 10RM AND LEGALITY

INTRODUCED BY COUNCILMEMBER

_
CITY AnORNEY

ORDINANCE NO. - - - - -C.M.S.

AN ORDINANCE AMENDING CHAPTER 8.22 OF THE OAKLAND

MUNICIPAL CODE, RESIDENTIAL RENT ARBITRATION PROGRAM
AND EVICTIONS, TO AMEND PROVISIONS CONCERNING
INCREASING RENTS AFTER CERTAIN TERMINATIONS OF __
TENANCIES, TO REMOVE THE RENT PROGRAM SERVICE FEE
FOR INSERTION IN A DIFFERENT PART OF THE MUNICIPAL
CODE, AND TO MAKE OTHER MODIFICATIONS RESLILTING
FROM THE ENACTMENT OF THE JUST CAUSE FOR EVICTION
ORDINANCE

Whereas, on November 5, 2002, the voters approved Measure EE, the Just Cause for
Eviction Ordinance, which took effect on December 27,2002;
Whereas, the Just Cause for Eviction Ordinance limits landlords' ability to evict tenants
without cause so as to make unnecessary the provisions of Chapter 8.22 that limit rents to
new tenants after terminations of tenancy pursuant California Civil Code Section 1946;
Whereas, in light of the Just Cause for Eviction Ordinance, the City Council wishes to
eliminate the eviction restricts in Chapter 8.22 on rents after terrninations of tenancy
pursuant to Civil Code Section 1946 that are no longer necessary, but to retain these
restrictions on a limited basis for the residential rental units exempt from the Just Cause for
Eviction Ordinance (properties with three units or less where one of the units is owneroccupied);
Whereas, other amendments to Chapter 8.22 are necessary in order to conform the
Chapter to the Just Cause for Eviction Ordinance;
Whereas, Measure EE did not provide a source for funding the new administrative
responsibilities the measure creates for the Rent Program administration;

q
1
281326._1.DOC

COMMUNITY 1\ ECONOMJC

DEVELOPMENT CMTE
MAY 132003

Whereas, approximately 19,000 units subject to the Just Cause for Eviction Ordinance are
not covered by the Ren.t Adjustment Program a~d.do not pay the Rent Program Service
Fee",
.
Whereas, the Rent Program Service should be extended to all units covered by the Just
Cause for Eviction Ordinance as a reasonable fee for the additional administrative services
necessary to administer that Ordinance for those units not already paying the Rent Program
Service Fee and for this reason and the Rent Program Service Fee should be put into its
own Article in Chapter 8.22;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN
THAT CHAPTER 8.22 OF THE OAKLAND MUNICIPAL CODE IS HEREBY AMENDED AS
FOLLOWS:
CHAPTER 8.22
RESIDENTIAL RENT ADJUSTMENTS AND EVICTIONS
ARTICLE I
RESIDENTIAL RENT ADJUSTMENT PROGRAM
Sections:

8.22.010 Findings and purpose.Findings and purpose.

8.22.020 Definitions.
8.22.030 Exemptions.
8.22.040 Composition and Functions of the Board.
8.22.050 Summary of Notices Required by This Chapter 8.22, Article '-Summary of
Notices Required by This Chapter 8.22, Article I..
8.22.060 Notice of the Existence of the Chapter 8.22 Required at Commencement
of Tenancy.
8.22.070 Rent Adjustments for Occupied Covered Units.
8.22.080 Rent Increases Following Vacancies.
8.22.090 Petition and Response Filing Procedures.
8.22.100 Mediation of Rent Disputes.
8.22.110 Hearing Procedures.
8.22.120 Appeal Procedure.
8.22.130 Notice Requirements for a Civil Code Section 1946 Termination of
Tenancy.
8.22.140 Unlawful Terminations of Tenancies for Increasing Rent After 1946
Termination of Tenancy.Unlawful Terminations of Tenancies.
8.22.150 Retaliatory Evictions.
8.22.160 Voluntary Mediation of Evictions.
8.22.170 General Remedies.General Remedies.
8.22.0108.22.180 Rent Program Service Fee
8.22.1808.22.190 Computation of Time.
8.22.1908.22.200 Severability.
2

8.22.2008.22.210 Nonwaiverability.NoAwaiverability.
8.22.2108.22.220 Applicability Effective date of Chapter 8.22.Article
l.Applicability Effective date of Chapter.

8.22.010 Findings and purpose.

A. The City Council finds that a shortage of decent, safe, affordable and sanitary
residential rental housing continues to exist in Oakland. This shortage is evidenced by a low
vacancy rate among such units throughout the city and a continually increasing demand for
such housing. Many residents of Oakland pay a substantial amount of their monthly income
for rent. The present shortage of rental housing units and the prevailing rent levels have a
_ detrimental effect on the health, safety, and welfare of a substantial number of Oakland
- residents, particularly senior citizens, persons in low and moderate income households, and
persons on fixed incomes. Stability in their housing situation is important for individuals and
families in rental housing. In particular, tenants desire to be free from the fear of eviction
motivated by a rental property owner's desire to increase rents. Rental property owners
desire the ability to expeditiously terminate the tenancies of problem tenants.
--&- B. Further, the welfare of all persons who live, work, or own residential rental
property in the City depends in part on attracting persons who are willing to invest in
residential rental property in the city. It is, therefore, necessary that the City Council take
actions that encourage investment in residential housing while also protecting the welfare of
residential tenants.
--G-.- C. Among the purposes of Chapter 8.22 are providing relief to residential tenants in
Oakland by limiting rent increases for existing tenants; encouraging rehabilitation of rental
units, encouraging investment in new residential rental property in the City; reducing the
financial incentives to rental property owners who terminate tenancies under California Civil
Code Section 1946 ("Section 1946") or where rental units are vacated on other grounds
under state law Civil Code Sec. 1954.50, et seq. ("Costa-Hawkins") that permit the City to
regulate initial rents to new tenants, and allowing efficient rental property owners the
opportunity for both a fair return on their property and rental income sufficient to cover the
increasing cost of repairs, maintenance, insurance, employee services, additional amenities,
and other costs of operation .

....g.,. D. The City Council also wishes to foster better relations between rental property
owners and tenants and to reduce the cost and adversarial nature of rent adjustment
proceedings under Chapter 8.22. For these reasons, Chapter 8.22 includes options for
rental property owners and tenants to mediate rent disputes that would otherwise be subject
to a hearing process, and to mediate some evictions.
.

-e. E. Terminations of Tenancies Pursuant to California Civil Code Section 1946. On

November 5.2002, Oakland voters passed the Just Cause for Eviction Ordinance (Measure
EE). The enactment of the Just Cause for Eviction Ordinance by the electorate makes the
need for the eviction protection in Chapter 8.22, Article I (Rent Adjustment Ordinance) for a
tenant whose tenancy is terminated by California Civil Code Section 1946 unnecessary and
also overrides portions of Article I. However. +!he City Council also desires to better assure
the stability of tenancies while preserving residential rental property owners' flexibility to
remove problem tenants in those rental units covered under Chapter 8.22. Article I. but
exempt from the Just Cause for Eviction Ordinance (rental units in residential property of
three or fewer units where one of the units is owner-occupied). For these reasons, Chapter
3

8.22~ Article I continues to restricts rental property owners' ability to increase rents to new
tenants after specified terminations of tenancies on those units exemptfrom the JustGause
for Eviction Ordinance. Under state law, cities have the authority to limit rental property
owners' ability to evict tenants to certain specified grounds and pursuant to Costa-Hawkins
rental property owners have the right to set the initial rent to a new tenant without restriction
following certain vacancies. Under Chapter 8.22, for those rental units not subject to the
Just Cause for Eviction Ordinance, the rental property owners are permitted to terminate
tenancies by giving notice pursuant to California Civil Code Section 1946. However, one
purpose of Chapter 8.22 is to prevent unjustified rent increases that follow Civil Code
Section 1946 terminations of tenancy and to better assure tenancies following such
vaccmcies are not created to evade this purpose. Consistent with these objectives, Chapter
8.22 regulates rent increases in excess of the annual Consumer Price Index formula set out
in Chapter 8.22 that follow vacancies pursuant to Section 1946 and other circumstances in
which the City may regulate the initial rent to a new tenant. Further, Chapter 8.22 regulates
terminations of tenancies pu rsuant to Civil Code Section 1946 by requ iring add itional
information in the notices and providing that the failure to provide proper notice pursuant to
this Chapter 8.22 is a defense to the eviction. For all other residential rental units covered
under this Article I, rents following a termination of tenancy pursuant to California Civil Code
Section 1946 are set as provided for in the Just Cause for Eviction Ordinance (O.M.C. 8.22,
Article II (8.22.300)) or the Ellis Act Ordinance, (O.M.C. 8.22, Article III (8.22.400)).

--F. F.

The City Council desires to provide efficient and effective program services to
rental property owners and tenants. The City Council recognizes there must be an
adequate funding source in order to accomplish this objective. To provide adequate funding
for the program and services provided to rental property owners and tenants under Chapter
8.22, an annual fee has been established, as set out in the Master Fee Schedule. The
funds provided from this fee shall be dedicated to the administrative, public outreach,
enforcement, and legal needs of the programs and services set out in Chapter 8.22 and not
for any other purposes. This fee is to be paid by the rental property owner not as the owner
of real property, but instead as the operator of the business of renting residential units, with
a reimbursement of 50 percent of the fee from the tenant as provided in Chapter 8.22. The
fee will sunset after two years unless the City Council acts to extend it. With the enactment
of the Just Cause for Eviction Ordinance. the City Council desires to extend the Rent
Program Service Fee to all residential rental units covered by either Residential Rent
Adjustment Program or the Just Cause for Eviction Ordinance and, therefore, moves the
section of Article I pertaining to the fee to a new Chapter 8.22. Article IV.
G.The City Council desires that before the amendments to Chapter 8.22 fully take effect,
the regulations to implement Chapter 8.22, new forms, and informational and outreach
materials should first be developed. To allow rental property owners and tenants to become
aware of the changes to Chapter 8.22 before they fully take effect and to allow for the
enactment of ne'vY regulations to implement this amended and restated Chapter 8.22, the
amendments to Chapter 8.22 will take effect on July 1, 2002 except for the fee and as
otherv'Iise stated in Chapter 8.22. The fee set forth in Chapter 8.22 may be billed to rental
property owners to meet the time frames for payment and delinquency set forth in Chapter
~

8.22.020 -Definitions.
As used in Chapter 8.22, Article I:
"1946 Notice" means any notice of termination of tenancy served pursuant to California
Civil Code 1946. This notice is commonly referred to as a 30 or 60-day notice of
4

t;

termination of tenancy, but the notice period may actually be for a longer or shorter period,
depending on the circumstances.
"1946 Termination of Tenancy" means any termination of tenancy pursuant to California
Civil Code 1946.
"Anniversary Date" is the date falling one year after the day the Tenant was provided
with possession of the Covered Unit or one year after the day the most recent rent
adjustment took effect, whichever is later. Following certain vacancies, a subsequent
Tenant will assume the Anniversary Date of the previous Tenant (Section 8.22.080).
"Banking" means any CPI Rent Adjustment (or any rent adjustment formerly known as
the Annual Permissible Rent Increase) the Owner chooses to delay imposing in part or in
full, and which may be imposed at a later date, subject to the restrictions in the Regulations.
"Board" and "Residential Rent Adjustment Board" means the Housing, Residential Rent
and Relocation Board.
"Capital Improvements" means those improvements to a Covered Unit or common
areas that materially add to the value of the property and appreciably prolong its useful life
or adapt it to new building codes. Those improvements must primarily benefit the Tenant
rather than the Owner.
"CPI--AII Items" means the Consumer Price Index - all items for all urban consumers for
the San Francisco-Oakland-San Jose area as published by the U.S. Department of Labor
Statistics for the 12 month period ending on the last day of February of each year.
"CPI--Less Shelter" means the Consumer Price Index- all items less shelter for all urban
consumers for the San Francisco-Oakland-San Jose area as published by the U.S.
Department of Labor Statistics for the 12 month period ending on the last day of February of
each year.
"CPI Rent Adjustment" means the maximum Rent adjustment (calculated annually
according to a formula pursuant to Section 8.22.070 B.3) that an Owner may impose within
a twelve (12) month period without the Tenant being allowed to contest the Rent increase,
except as provided in Section 8.22.070 B.2 (failure of the Owner to give proper notices,
decreased Housing Services, and uncured code violations).
"Costa-Hawkins" means the California state law known as the Costa-Hawkins Rental
Hawkins Act codified at California Civil Code 1954.50, et seq. (Appendix A to this Chapter
contains the text of Costa-Hawkins).
.
"Covered Unit" means any dwelling unit, including joint living and work quarters, and all
housing services located in Oakland and used or occupied in consideration of payment of
rent with the exception of those units designated in Section 8.22.030" A as exempt.
"Debt Service" means the monthly principal and interest payments on one or more
promissory notes secured by deed(s) of trust on the the property on which the Covered
Units are located.
"Ellis Act Ordinance" means the ordinance codified at O.M.C. 8.22.400 (Chapter 8.22,
Article III) setting out requirements for withdrawal of residential rental units from the market
pursuant to California Government Code 7060. et seq. (the Ellis Act).
"Fee" means the Rent Program Service Fee as set out in O.M.C. 8.22.500 (Chapter 8.22,
Article IV).
"Housing Services" means all services provided by the Owner related to the use or
occupancy of a Covered Unit, including, but not limited to, insurance, repairs, maintenance,
painting, utilities, heat" water, elevator service, laundry facilities, janitorial service, refuse
removal, furnishings, parking, security service, and employee services.
"Owner" means any owner, lessor or landlord, as defined by state law, of a Covered Unit
that is leased or rented to another, and the representative, agent, or successor of such
5

owner, lessor or landlord.

"Just Cause for Eviction Ordinance" means the ordinance adopted by the voters on
November 5,2002 (also known as Measure EE) and codified at O.M.C. 8.22.400 (O.M.C.
Chapter 8.22, Article II).
"Rent" means the total consideration charged or received by an Owner in exchange for
the use or occupancy of a Covered Unit including all Housing Services provided to the
Tenant.
"Rent Adjustment Program" means the department in the City of Oakland that
administers this Ordinance Chapter 8.22 and also includes the Board.
"Regulations" means the regulations adopted by the Board and approved by the City
Council for implementation of tffi&-Chapter 8.22, Article I (formerly known as "Rules and
Procedures") (After Regulations that conform 'Nith this Chapter are approved they will be
attached to this Chapter as Appendix B).
.. "Security Deposit" means any payment, fee, deposit, or charge, including but not limited
to, an advance payment of rent, used or to be used for any purpose, including but not limited
to the compensation of an Owner for a Tenant's default in payment of rent, the repair of
damages to the premises caused by the Tenant, or the cleaning of the premises upon
termination of the tenancy exclusive of normal wear and tear.
"Tenant" means a person entitled, by written or oral agreement to the use or occupancy
of any Covered Unit.
"Uninsured Repairs" means that work done by an Owner or Tenant to a Covered Unit or
to the common area of the property or structure containing a Covered Unit which is
performed to secure compliance with any state or local law as to repair damage resulting
from fire, earthquake, or other casualty or natural disaster, to the extent such repair is not
reimbursed by insurance proceeds.
8.22.030 Exemptions.
-A A.
Types of Dwelling Units Exempt. The following dwelling units are not Covered
Units for purposes of this Chapter 8.22, Article I only (the Just Cause for Eviction Ordinance
(Chapter8.22, Article II) and the Ellis Act Ordinance (Chapter 8.22, Article II)) have different
exem ptions):
1. Dwelling units whose rents are controlled, regulated (other than by this Chapter),
or subsidized by any governmental unit, agency or authority.
2. Accommodations in motels, hotels, inns, tourist houses, rooming houses, and
boarding houses, provided that such accommodations are not occupied by the same Tenant
for thirty (30) or more continuous days.
3. Housing accommodations in any hospital, convent, monastery, extended care
facility, convalescent home, nonprofit home for the aged, or dormitory owned and operated
by an educational institution.
4. Dwelling units in a nonprofit cooperative, owned, occupied, and controlled by a
majority of the residents.
5. Dwelling units which were newly constructed and received a certificate of
occupancy on or after January 1, 1983. This exemption does not apply to any newly
constructed dwelling unit that replaces Covered Units withdrawn from the rental market in
accordance with a.M.C. 8.22.460 E (Ellis Act Ordinance). To qualify as a newly constructed
dwelling unit, the dwelling unit must be entirely newly constructed or created from space that
was formerly entirely non-residential.
6. Substantially rehabilitated buildings.
6

7. Dwelling units exempt pursuant to Costa-Hawkins (California Civil Code

1954.52).
Exemption Procedures.
1. Certificate of Exemption:
a. A Certificate of Exemption is a determination by the Rent Adjustment Program
that a dwelling unit or units qualify for an exemption and, therefore, are not Covered Units.
An Owner may only obtain a Certificate of Exemption by claiming and proving an exemption
in response to a Tenant petition.
b. The burden of proving that a dwelling unit is exempt is on the Owner. A
Certificate of Exemption is a final determination of exemption absent fraud or mistake.
c. Timely submission of a Certificate of Exemption previously granted in
response to a petition shall result in dismissal of the petition absent proof of fraud or mistake
regarding the granting of the Certificate. The burden of proving such fraud or mistake is on
the Tenant.
2. Exemptions for Substantially Rehabilitated Buildings.
a. In order to obtain an exemption based on substantial rehabilitation, an Owner
must have spent a minimum of fifty (50) percent of the average basic cost for new
construction for a rehabilitation project.
b. The average basic cost for new construction shall be determined using tables
issued by the Chief Building Inspector applicable for the time period when the Substantial
Rehabilitation was completed.
--8, B.

--e.. C.
Controlled, Regulated, or Subsidized Units. The Owner of a dwelling unit that
is exempt because it is controlled, regulated (other than by this Chapter), or subsidized by a
governmental agency (Section 8.22.030 A.1 ) must file a notice with the Rent Adjustment
Program within thirty (30) days after such dwelling unit is no longer otherwise controlled,
regulated, or subsidized by the governmental agency. Once the dwelling unit is no longer
controlled, regulated, or subsidized, the dwelling unit ceases to be exempt and becomes a
Covered Unit subject to this Chapter 8.22, Article I. Such notice must be on a form
prescribed by the Rent Adjustment Program.
8.22.040 Composition and Functions of the Board.
"
-A. A.
Composition.
1. Members. The Board shall consist of seven members appointed pursuant to
Section 601 of the Charter. The Board shall be comprised of two residential rental property
owners, two tenants, and three persons who are neither tenants nor residential rental
property owners.
2. Appointment. A Board member is deemed appointed after confirmation by the
City Council and upon taking the oath of office.
3. Board members serve without compensation.
Vacancies and Removal.
1. A vacancy on the Board exists whenever a Board member dies, resigns, or is
removed, or whenever an appointee fails to be confirmed by the City Council within two City
Council meetings of nqmination by the Mayor.
2. Removal for Cause. A Board member may be removed pursuant to Section 601
of the City Charter. Among other things, conviction of a felony, misconduct, incompetency,
inattention to or inability to perform duties, or absence from three consecutive regular
--8, B.

meetings except on account of illness or when absent from the City by permission of the
Board, constitute cause for removal.
3. Report of Attendance. To assure participation of Board members, attendance by
the members of the Board at all regularly scheduled and special meetings of the Board shall
be recorded, and such record shall be provided semiannually to the Office of the Mayor.
-G-. C.
Terms and Holdover.
1. Terms. Board members' terms shall be for a period of three years beginning on
February 12 of each year and ending on February 11 three years later. Board members
shall be appointed to staggered terms so that only one third of the Board will have terms
expiring each year, with no more than one Board memberwho is neither a residential rental
property owner nor a tenant, and no more than one rental property owner and no more than
-one tenant expiring each year. Terms will commence upon the date of appointment, except
that an appointment to fill a vacancy shall be for the unexpired portion of the term only. No
person may serve more than two consecutive terms.
2. Holdover. A Board member whose term has expired may remain as a Board
member for up to one year following the expiration of his/her term or until a replacement is
appointed whichever is earlier. The City Clerk shall notify the Mayor, the Rent Program, the
Board, and affected Board member when a Board member's holdover status expires. Prior
to notification by the City Clerk of the end of holdover status, a Board member may fully
participate in all decisions in which such Board member participates while on holdover
status and such decisions are not invalid because of the Board member's holdover status.
-Q. D.

Duties and Functions.

1. Appeals. The Board hears appeals from decisions of hearing officers.
2. Regulations. The Board may develop or amend the Regulations, subject to City
Council approval.
3. Reports. The Board shall make such reports to the City Councilor Committees of
the City Council as may be required by this Chapter, by the City Councilor City Council
Committee.
4. Recommendations. The Board may make recommendations to the City Council
or appropriate City Council committee pertaining to this Chapter or City housing policy when
requested to do so by the City Council or when the Board otherwise acts to do so.
8.22.050 Summary of Notices Required by This Chapter 8.22, Article I.
The following is a summary of notices required by this Chapter 8.22, Article I (the Just
Cause for Eviction Ordinance (Chapter 8.22, Article
and the Ellis Act Ordinance (Chapter
8.22, Article III) may require other or different notices). Details of the requirements for each
notice are found in the applicable Section. (Mer the notices to conform with this Chapter
are developed, they shall be attached to this Chapter as Appendix C).

1n

--A. A.
Notice at the Commencement of a Tenancy. Existence and Scope of
this Chapter (Section 8.22.060).

--8. 8.
Change in Terms of Tenancy or Rent Increase. Notice of Tenant's
Right to Petition. (Sectio,n 8.22.070 H).
-G-. C.
Notices and Filings Required With a 1946 Termination of Tenancy:
1. 1946 Notice (Section 8.22.130) which includes:
8

a. Amount of vacating Tenant's Rent and Anniversary Date; and

b. Vacating Tenant's rights following termination of tenancy;
2. Filing California Civil Code 1946 Notice with Rent Adjustment Program.
(Section 8.22.130 8.28.22.130 A.2).
3. Notice to New Tenant. (Section 8.22.130 C8.22.130 B)
a. Amount of vacating Tenant's Rent and Anniversary Date; and
b. Right of Owner to pass along Rent increases not given former Tenant.
4.Report of new Tenant's Rent. (Section 8.22.0101\8.22.130 C).
5.Report after t\'lelve (12) months follmving vacancy. (Section 8.22.010 A8.22.130

8.22.060 -Notice of the Existence of the Chapter 8.22 Required at Commencement of

Tenancy.
-A A.
Notice at Commencement of Tenancy. The Owner of any Covered Unit is
required to comply with the following notice requirements at the commencement of any
tenancy:
1. On or before the date of commencement of a tenancy, the Owner must give the
Tenant a written notice in a form prescribed by the Rent Adjustment Program which must
include the following information:
a. The existence and scope of Chapter 8.22; and
b. The Tenant's rights to petition against certain Rent increases.

-&- B.
Evidence of Giving Notice. When filing an Owner's response to a Tenant
petition or an Owner's petition for a Rent increase, the Owner must submit evidence that the
Owner has given the notice required by this Section to the affected Tenants in the building
under dispute in advance of the filing. When responding to a Tenant petition, the Owner
may allege that the affected dwelling units are exempt in lieu of providing evidence of
complying with the notice requirement. If an Owner fails to submit the evidence and the
subject dwelling unit is not exempt, then the Owner's petition or response to a Tenant's
petition must be dismissed. This evidence can be a statement of compliance given under
oath, however, the Tenant may controvert this statement at the hearing. An Owner's filing
the notice in advance of petition or response prevents the Owner's petition or response from
being dismissed, but the Owner may still be subject to the Rent increase forfeiture if the
notice was not given at the commencement of the tenancy or within the cure period set out
in Section 8.22.060 C.
-G. C.
Failing to Give Notice. An Owner who fails to give notice of the existence and
scope of the Rent Adjustment Program at the commencement of a tenancy, but otherwise
qualifies to petition or respond to a petition filed with the Rent Adjustment Program, will
forfeit six months of the Rent increase sought unless the Owner cured the failure to give the
notice. An Owner may cure the failure to give the notice at the commencement of a tenancy
required by this Section and not be subject to a forfeiture of a Rent increase if the Owner
gives the notice at least six months prior to serving the Rent increase notice on the Tenant
or, in the case of an Owner petition, at least six months prior to filing the petition.
I

8.22.070 Rent Adjustments for Occupied Covered Units.

This Section applies to all Rent adjustments for continuously occupied Covered Units.
(Rent increases following vacancies of Covered Units are governed by Section 8.22.080).
9

Any Rent increase

for
a continuously
occupied
Covered Unit must cornplywith this Section.
-,-.
-.
-"
...
-

~:

. . :.,

-A. A.
One Rent Increase Each Twelve Months. An Owner may increase the Rent on
a Covered Unit occupied continuously by the same Tenant only once in a 12-month period.
Such Rent increase cannot take effect earlier than the Tenant's Anniversary Date.
--& B.
CPI Rent Adjustments.
1. Effective Date of this Section. An Owner may first impose CPI Rent Adjustments
pusuant to this Section that take effect on or after July 1, 2002.
2. CPI Rent Adjustment Not Subject to Petition. The Tenant may not petition to
contest a Rent increase in an amount upto and including the CPI Rent Adjustment unless
-the Tenant alleges one or more of the following:
a. The Owner failed to provide the notice required at the commencement of
tenancy and did not cure such failure (Section 8.22.060),
b. The Owner falled to provide the notice required with a Rent increase (Section
8.22.070 H);
c. The Owner decreased Housing Services;
d. The Covered Unit has uncured health, safety, fire, or building code violations
pursuant to Section 8.22.070 0.7.
3. Calculation of the CPI Rent Adjustment. Beginning in 2002, the CPI Rent
Adjustment is the average of the percentage increase in the CPI-AII Items and the CPI-Less Shelter for the twelve month period starting on March 1 of each calendar year and
ending on the last day of February of the following calendar year calculated to the nearest
one tenth of one percent.
4. Effective Date of CPI Rent Adjustments. An Owner may notice a CPI Rent
Adjustment on the first day of the month following the Rent Adjustment Program's
announcement of the CPI Rent Adjustment for that year or sufficiently in advance of the
Tenant's Anniversary Date to comply with state law (California Civil Code 827), whichever
is later.
5. Banking. In accordance with rules set out in the Regulations, an Owner may
Bank CPI Rent Adjustments and Annual Permissible Rent Adjustments previously
authorized by this Chapter.
6. Schedule of Prior Annual Permissible Rent Adjustments. Former Annual
Permissible Rent Adjustments available under the prior versions of Chapter 8.22:
a. May 6, 1980 through October 31, 1983, the annual rate was ten (10) percent.
b. November 1, 1983 through September 30,1986, the annual rate was eight (8)
percent.
c. October 1, 1986 through February 28, 1995, the annual rate was six (6)
percent.
d. March 1, 1995 through June 30, 2002, the annual rate was three (3) percent.
-C-. C.
Rent Increases in Excess of the CPI Rent Adjustment.
1. A Tenant may file a petition in accordance with the requirements of Section
8.22.110 contesting any Rent increase which exceeds the CPI Rent Adjustment.
2. If a Tenant files a petition and if the Owner wishes to contest the petition, the
Owner must respond by either claiming an exemption and/or justifying the Rent increase in
excess of the CPI Rent Adjustment on one or more of the following grounds:
a. Banking;
b. Capital improvement costs;
10

c. Uninsured repair costs;

d. Increased housing service costs;
e. Debt service costs;
f. The Rent increase is necessary to meet constitutional or fair return
requirements.
.
3. The amount of Rent increase allowable for the grounds listed in Section 8.~2.070
C.2 are subject to the limitations set forth in the Regulations.
4. An Owner must provide a summary of the justification for a Rent increase upon
written request of the Tenant.

-9. D.
Operative Date of Rent Adjustment When Petition Filed.
1. While a Tenant petition is pending, a Tenant must pay when due, pursuant to the
- Rent increase notice, the amount of the Rent increase that is equal to the CPI Rent
Adjustment unless:
a. The Tenant's petition claims decreased Housing Services; or
b. The Owner failed to separately state in the Rent increase notice the amount of
the Rent increase that equals the CPI Rent Adjustment pursuant to Section 8.22.070 H.
2. The amount of any noticed Rent adjustment above the CPI Rent Adjustment that
is the subject of a petition is not operative until the decision of the Hearing Officer has been
made and the time to appeal has passed.
3. When a party appeals the decision of a Hearing Officer, the Tenant must continue
to pay the amount of the Rent adjustment due during the period prior to the issuance of the
decision and the remaining amount of the noticed Rent increase is not operative until the
Board has issued its written decision.
4. Following a final decision, a Rent adjustment takes effect on the following dates:
a. In the case of a Rent increase, the date the increase would have been
effective pursuant to a valid Rent increase notice given to the Tenant, unless a six (6) month
forfeiture applies for an uncured failure to give the required notice at the commencement of
tenancy;
b. In the case of a decrease in Housing Services, on the effective date for a
noticed decrease in Housing Services or, if no notice was given, the date the decrease in
Housing Services occurred.
5. A Tenant who files a petition following a thirty (30) day Rent increase notice and
who does not file a petition before the increased Rent becomes due, must pay the increased
Rent when due until the Tenant files the petition. Once the Tenant files the petition, the
portion of Rent increase above the CPI Rent Adjustment need not be paid until the decision
on the petition is final.
6. A Rent increase following an Owner's petition is operative on the date the
decision is final and following a valid Rent increase notice based on the final decision.
7. No part of any noticed Rent increase is operative during the period after the
Tenant has filed a petition and the applicable Covered Unit has been cited in an inspection
report by the appropriate governmental agency as containing serious health, safety, fire, or
building code violations as defined by Section 17920.3 of the California Health and Safety
Code, excluding any violation caused by a disaster or where the owner proves the violation
was solely caused by the willful conduct of the Tenant. In order for such rent increase to be
operative the Owner mlJst provide proof that the cited violation has been abated. The
Owner must then issue a new Rent increase notice pursuant to California Civil Code Section
827. The Rent increase will be operative in accordance with Section 827.
11

-E-. E.
An Owner cannot increase the Rent for a Covered Unit except byf()IJowing the
procedures set out in this Chapter 8.22 (inciudII,qthe Just Cause forE:vIctIon Ordinance
(O.M.C. Chapter 8.22, Article II) and the EllIs Act Ordinance (O.M.C. Chapter 8.22, Article
illlor where Costa-Hawkins allows an Owner to set the initial Rent for a new Tenant without
restriction.
-F. F.
Decreased Housing Services. A decrease in Housing Services is considered
an increase in Rent. A Tenant may petition for an adjustment In Rent based on a decrease
in Housing Services under standards in the Regulations. The Tenant's petition must specify
the Housing Services decreased. Where a Rent or a Rent increase has been reduced for
decreased Housing Services, the Rent or Rent increase may be restored in accordance with
procedures set out in the Regulations when the Housing Services are reinstated.
-G.,. G.
Pass-through of Fee. An Owner may passthrough one half of the Fee to a
Tenant in accordance with Section-8.22.500 G8.22.180. The allowed Fee pass-through
shall not be added to the Rent to" calculate the CPI Rent Adjustment or any other Rent
adjustment and shall not be considered a Rent increase.

--M. H.
Notice Required to Increase Rent or Change Other Terms of Tenancy.
.
1. As part of any notice to increase Rent or change any terms of tenancy, an Owner
must include:
a. Notice of the existence of Chapter 8.22;
b. The Tenant's right to petition against any Rent increase in excess of the CPI
Rent Adjustment;
c. When an Owner notices a Rent increase in excess of the CPI Rent
Adjustment, the notice must include a statement that the Owner must provide the Tenant
with a summary of the justification for the amount of the Rent increase in excess of the CPI
Rent adjustment if the Tenant makes a written request for such summary.
i.
A Tenant request for a summary of the amount of the Rent increase in
excess of the CPI Rent Adjustment, the Tenant must do so within thirty (30) days of service
of the Rent increase notice;
ii.
The Owner must respond to the request with a written summary within
fifteen (15) days after service of the request by the Tenant.
d. If the increase exceeds the CPI Rent Adjustment, the notice must state the
amount of the increase constituting the CPI Rent Adjustment. If the amount constituting the
CPI Rent Adjustment is not separately stated the Tenant is not required to pay the amount
of the CPI Rent Adjustment while a petition challenging the Rent increase is pending.
2. A notice to increase Rent must include the information required by 8.22.070 H.1'
using the language and in a form prescribed by the Rent Adjustment Program.
3. A Rent increase is not permitted unless the notice required by this Section is
provided to the Tenant. An Owner's failure to provide the notice required by this Section
Invalidates the Rent increase or change of terms of tenancy. This remedy is not the
exclusive remedy for a violation of this provision. If the Owner fails to timely give the Tenant
a written summary of the basis for a Rent increase in excess of the CPI Rent Adjustment, as
required by Section 8.22.070 H.1.c, the amount of the Rent increase in excess of the CPI
Rent Adjustment is invalid.
--k l.An Owner may terminate the tenancy for non-payment of Rent (California Code of
Civil Procedure Section 1161 (2) (unlawful detainer)) of a Tenant who fails to pay the portion
12

of a Rent increase that is equal to the CPI Rent Adjustment when the Tenant is required to
do so by this Subsection. In addition to any other defenses to the termination of tenancy the
Tenant may have, a Tenant may defend such termination of tenancy on the basis that:
1. The Owner did not comply with the notice requirements for a Rent increase;
2. The Tenant's petition was based on Decreased Housing Services; or
3. That the Owner failed to give the Tenant a written su mmary of the basis for a Rent
increase in excess of the CPI Rent Adjustment as required by Section 8.22.070 H.1.c.

8.22.080 Rent Increases Following Vacaflcies.

--A. A. .
Purpose of Section. This Section sets forth how an Owner may set the Rents
to a new Tenant following vacancies. Rent increases following an Owner's setting the initial
Rent are regulated by this Chapter.
-B,. B.

Setting Initial Rents to Tenants Without Restriction. Costa-Hawkins provides

that Owners may set an initial Rent to a new Tenant without restriction except in certain
circumstances.
--G. C.
Costa-Hawkins Exceptions. Costa-Hawkins permits an Owner to set initial
Rents to a new Tenant without restriction except where the previous Tenant vacated under
the following circumstances:
1. 1946 Termination of Tenancy. (liThe previous tenancy has been terminated by
the owner by notice pursuant to [California Civil Code ] 1946 ....") (California Civil Code
1954.53(a)(1 )).
2. Change of Terms of Tenancy or Rent Increase Not Permitted by This Chapter
8.22. The previous tenancy was terminated following a notice of a Rent increase not
permitted by this Chapter 8.22. ("The previous tenancy ...has been terminated upon a
change in the terms of the tenancy pursuant to [California Civil Code ] 827, except a
change permitted by law in the amount of rent or fees.") (California Civil Code
Sec.1954.53(a)(1 )).
3. Failure to Renew Contract With Government That Limits Rent Increases. In
certain circumstances," ... an owner...[who] terminates or fails to renew a contract or
recorded agreement with a government agency that provides for a rent limitation to a
qualified tenant" ..."shall not be eligible to set an initial rentfor three years following the date
of the termination or nonrenewal of the contract or agreement". (California Civil Code
1954.53(a)(1)(A)).
4. Owner Agrees to Rent Restriction in Exchange for Subsidy. The Owner has
agreed to a rent restriction in return for public financial support. (California Civil Code
1954(a)(1 )(8)(2).
5. Unabated Serious Code Violations. The dwelling unit was cited for serious health,
safety, fire, or building code violations at least 60 days prior to the vacancy and the
violations were not abated by the time the unit was vacated. (California Civil Code
1954.53(f)).
D.
Sublets and Assignments. Under specified conditions, Costa Hawkins permits
an Owner to set initial Rents without restriction when a Covered Unit is sublet or assigned
and none of the original occupants permanently reside in the Covered Unit. (California Civil
Code 1954.53(d)).
-f),

13

--E. E.

Rent Increases After Setting an Initial Rent Without Restriction. After the
Owner sets 'an' initial Rent without restriction pursuant to Costa-Hawkins, the Owner may
only increase Rent in conformance with the requirements of Section 8.22.070, based on
circumstances or cost increases that arise after the beginning of the new tenancy. The
Owner may not increase Rents based on Banking, cost increases, capital improvements, or
other circumstances that arose before the new tenancy began.

-F-. F.

Restrictions Where the Owner May Not Set the Initial Rent.
1. The Just Cause for Eviction Ordinance (O.M.C. 8.22.300 (Chapter 8.22, Article II))
provides for certain restrictions on setting initial rents to new tenants and upon re-rental to
former tenants.
.
2. The Ellis Act Ordinance (O.M.C. 8.22.400 (Chapter 8.22. Article III)) provides for
certain restrictions on setting initial rents to new tenants and upon re-rental to former
tenants.
3. This Section 8.22.080 F8.22.080 F.3 applies to only Covered Units exempt from
the Just Cause for Eviction Ordinance [Measure EE Subsection SF (properties containing
three or fewer dwelling units where one of the units is owner occupied)]. In circumstances in
which Costa Hawkins does not give an Owner the right to set the initial Rents for new
tenants, the following restrictions shall apply:
4-:-a.
During the first twelve (12) months after the previous Tenant vacated a
Covered Unit, on or after the Anniversary Date of the tenant who vacated the unit, the
Owner may increase the Rent up to the CPI rent adjustment for the current year, which is
authorized in Section 8.22.070 B.
~b.
Beginning twelve (12) months after the previous tenant vacated a
Covered Unit, the Owner may increase the rent in accordance with Section 8.22.070 of this
Ordinance. The Owner also may impose rent increases which could have been imposed on
the prior tenant, provided that the Tenant was notified of the Owner's right to those
increases prior to the commencement of the tenancy in accordance with Section 8.22.070
C-- (Such rights include, but are not limited to, rights to Banked and Capital Improvement
Rent adjustments~):.
G.c.
Tenant Petitions for Restitution of Rent Increases in Violation of this
Section 8.22.080 F.3. If an Owner charges a Rent in excess of the Rent Permitted by this
Section, thE? Tenant may petition the Rent Program to adjust the Rent to the permitted level
and to proVide for restitution of any overcharges.

8.22.090 Petition and Response Filing Procedures.

-A.- A.
Tenant Petitions.
1. Tenant may file a petition regarding any of the following:
a. A Rent increase exceeds the CPI Rent Adjustment, including, without limitation
circumstances where:
i.
The Owner failed to timely give the Tenant a written summary of the
basis for a Rent increase in excess of the CPI Rent Adjustment as required by Section
8.22.070 H.1.c; and
ii.
The Owner failed to give the Tenant information on the Rent increases
the Owner could have imposed on the Tenant whose tenancy was terminated by the 1946
Notice as required by Section 8.22.130 C.1.aB.22.130 8.1.0.
b. The Owner set an initial Rent in excess of the amount permitted pursuant to
Section 8.22.080 (Rent increases following vacancies);
14

c. A Rent increase notice fails to comply with the requirements of this Section
8.22.070 H;
d. The Owner failed to give the Tenant a notice in compliance with Section
8.22.060;
e. The Owner decreased Housing Services to the Tenant;
f. The Tenant alleges the Covered Unit has been cited in an inspection report by
the appropriate governmental agency as containing serious health, safety, fire, or building
code violations pursuant to Section 8.22.070 0.7;
g. The Tenant claims relocation restitution pursuant to Section 8.22.140 C.1~.,.
h. The petition is permitted by the Just Cause for Eviction Ordinance (Measure
EE) O.M.C. 8.22.300;
i. The petition is permitted by the Ellis Act Ordinance, O.M.e. 8.22.400.
2. For a petition contesting a Rent increase, the petition must be filed within sixty
(60) days of which ever of the following is later:
a. The date the Owner serves the Rent increase notice; or
b. The date the Tenant first receives written notice of the existence and scope of
this Chapter as required by Section -8.22.060. 3. In order to 'file a petition or respond to an Owner petition, a Tenant must provide
the following at the time of filing the petition or response:
a. A completed Tenant petition or response on a form prescribed by the Rent
Adjustment Program;
b. Evidence that the Tenant's rent is current or that the Tenant is lawfully
withholding rent; and
c. A statement of the services that have been reduced or eliminated, if the
Tenant claims a decrease in Housing Services,.
d. A copy of the applicable citation, fif the Tenant claims the Rent increase need
not be paid because the Covered Unit has been cited in an inspection report by the
appropriate governmental agency as containing serious health, safety, fire, or building code
violations pursuantto Section 8.22.070 0.7.
4. A Tenant must file a response to an Owner's petition within thirty (30) days of
service of the notice by the Rent Adjustment Program that an Owner petition was filed.

-8. B.
Owner Petitions and Owner Responses to Tenant Petitions.
1. In order for an Owner to file a response to a Tenant petition or to file a petition
seeking a Rent increase, the Owner must provide the following:
a. Evidence of possession of a current City of Oakland business license;
b. Evidence of payment of the Rent Adjustment Program Service Fee;
c. Evidence of service of written notice of the existence and scope of the Rent .
Adjustment Program on the Tenant in each affected Covered Unit in the building prior to the
petition being filed;
d. A completed response or petition on a form prescribed by the Rent Adjustment
Program; and
e. Documentation supporting the Owner's claimed justification(s) for the Rent
increase or supporting any claim of exemption;
2. An Owner must file a response to a Tenant's petition within thirty (30) days of
service of the notice bYj the Rent Adjustment Program that a Tenant petition was filed.
8.22.100 Mediation of Rent Disputes.

15

Voluntary mediation of all rent increase disputes will be available to all parties to a
Rent adjustment hearing after the filing of the petition and response.
,
....

8.22.110 Hearing Procedures.

.
-A. A.
Hearing Officer. A hearing shall be set before a Hearing Officer to decide the
issues in the petition.
--8. B.

Hearings.

1. All hearings on petitions shall be open to the public and recorded.

2. Any party to a hearing may be assisted by a representative who may be an
attorney or any other person. A party must designate his or her representative in writing.

- -e. C.

Notification and Consolidation. Rent Adjustment Program staff shall notify the
Owner and Tenant in writing of the time and place set for hearing. Representatives of
parties shall also be notified of hearings, provided that the Rent Adjustment Program has
been notified in writing of a party's designation of a representative at least ten (10) days
prior to the notice of the hearing being sent. Disputes involving more than one Covered Unit
in any single building may be consolidated for hearing.
---Q... D.

Time of Hearing and Decision.

1. The Hearing Officer shall have the goal of hearing the matter within sixty (60) days
of the original petition's filing date.
2. The Hearing Officer shall have a goal of rendering a decision within sixty (60)
days after the conclusion of the hearing or the close of the record, whichever is later. The
decision shall be issued in writing.
3. The decision of the examiner shall be based entirely on evidence placed into the
record.

--E-.- E.
A Hearing Officer may order a Rent adjustment as restitution for any
overcharges or undercharges due, subject to guidelines set out in the Regulations.

--F-. F.
Administrative Decisions.
1. Notwithstanding the acceptance of a petition or response by the Rent Adjustment
Program, if any of the following conditions exist, a hearing may not be scheduled and a
Hearing Officer may issue a decision without a hearing:
a. The petition or response forms have not been properly completed or
submitted;
b. The petition or response forms have not been filed in a timely manner.;
c. The required prerequisites to filing a petition or response have not been met;
or
d. Conclusive proof of exemption has been provided and is not challenged by the
Tenant.
2. A notice regarding the parties' appeal rights will accompany any decision issued
administratively. Appeals are governed by Section 8.22.120.
-Go G.
Should the petitioner fail to appear at the designated hearing, the Hearing
Officer may dismiss the petition.

8.22.120 Appeal Procedure.

16

-A A.
Filing An Appeal.
1. Either party may appeal the Hearing Officer's decision, including an administrative
decision, within fifteen (15) days after service of the notice of decision by filing with the Rent
Adjustment Program a written notice on a form prescribed by the Rent Adjustment Program
setting forth the grounds for the appeal.
2. The matter shall be set for an appeal hearing and notice thereof shall be served
on the parties not less than ten (10) days prior to such hearing. ,
-8. B.
Appeal Hearings. The following procedures shall apply to all Board appeal
hearings:
1. The Board shall have a goal of hearing the appeal within thirty (30) days of filing
the notice of appeal.
2. All appeal hearings conducted by the Board shall be public and recorded.
3. Any party to a hearing may be assisted by an attorney or any person so
designated.
4. Appeals shall be based on the record as presented to the Hearing Officer unless
the Board determines that an evidentiary hearing is required. If the Board deems an
evidentiary hearing necessary, the case will be continued and the Board shall issue a written
order setting forth the issues on which the parties may present evidence. All evidence
submitted to the Board must be submitted under oath.
5. Should the appellant fail to appear at the designated hearing, the Board may
dismiss the appeal.

--G-. C.
Board's Decision Final. The Board's decision is final. Parties cannot appeal to
the City Council.
-Q, D.
Court Review. A party may seek judicial review of a final decision of the Board
pursuant to California Civil Code Section 1094.5 within the time frames set forth therein.

8.22.130 Notice Requirements for a Civil Code Section 1946 Termination of Tenancy.
A. Application. This Section 8.22.130 applies to only Covered Units exempt from the
Just Cause for Eviction Ordinance [Measure EE Subsection 5F (properties containing three
or fewer dwelling units where one of the units is owner occupied)].

-A B.
1946 Notice.
1. Form of 1946 Notice. A 1946 Notice must include the following information in the
format prescribed by the Rent Adjustment Program:
a. The last Rent and Anniversary Date for the vacating Tenant; and
b. The rights of the vacating Tenant regarding the 1946 Termination of Tenancy.
2. Filing of 1946 Notice with Rent Adjustment Program. An Owner must file a copy
of the 1946 Notice with the Rent Adjustment Program within ten (10) days following service
of the 1946 Notice on the Tenant.
3. Failure to Comply as Defense to Eviction. An Owner's failure to comply with the
notice and filing requirements of this Subsection is a defense in unlawful detainer action
based on a 1946 Notice and may make the Owner liable for administrative and civil
damages or penalties. I
--B. C.
Notice to New Tenant. After an Owner terminates a tenancy with a 1946
Notice, and prior to the commence of the first tenancy subsequent to the 1946 Termination

17

.I

of Tenancy, the Owner must provide the new Tenant for the subject Covered Unit with a
notice using the language and in a form prescribed by the Rent Adjustment Program." This
notice shall include the following:
1. Information about Rent Restrictions applicable following the 1946 Termination of
Tenancy including:
a. A statement of the Owner's right to impose Rent increases that could have
been imposed on the Tenant whose tenancy was terminated by the 1946 Notice, including
the basis for and the percentage or amount of such Rent increases. An Owner who fails to
provide the required information on such Rent increases cannot impose these Rent
increases on the new Tenant;
b. The rights of the first subsequent Tenant within the twelve (12) month period
following the vacancy by the Tenant whose tenancy was terminated by the 1946 Notice;
2. The last Rent and Anniversary Date of the Tenant whose tenancy was terminated
pursuant to a 1946 Notice; and
3. The date the Tenant whose tenancy was terminated by the 1946 Notice vacated
the Covered Unit.
D. Request for Subsequent Tenant's Rent.
1. The Rent Program may request that an Owner who is subject to this Section
8.22.130 submit to the Rent Program the Rent paid by any new Tenant who follows a
Tenant whose tenancy was terminated by a 1946 Notice.
2. The Rent Program may request the response be submitted under penalty of
perjury and may request documents verifying the Rent.
3. The Owner must submit a response to the Rent Program within fifteen' (15) days
of the date of request.
C.Report to the Rent Adjustment Program of the New Tenant's Rent. During the twelve
(12) month period after a Tenant vacates a Covered Unit pursuant to a 1946 Termination of
Tenancy, within thirty (30) days after the commencement of the new tenancy, the Owner
must report the initial Rent for any nmN Tenant and the date the prior Tenant vacated the
Covered Unit. If a ne'N tenancy has not commenced 'Nithin 90 days of service of the 1946
Notice, the Ovmer must file a report on the status of the occupancy or vacancy. The reports
required by this Subsection must be on forms prescribed by the Rent Adjustment Program
and senl8d on the current Tenant if there is one.
D.Status Report to the Rent Adjustment Program l\fter 1946 Termination of Tenancy.
\Nithin ten (10) days after the end of the twelve (12) month period follmving a vacancy
pursuant to a 1946 Termination of Tenancy, the Owner must report the Rent and occupancy
status of the subject Covered Unit on a form prescribed by the Rent Adjustment Program
and sePoled on the current Tenant if there is one.

6.1946 Notice Required to Terminate Tenancy at End of Term. A termination of tenancy

based on the end of the term of an oral or written lease or rental. agreement, including a
lease or rental agreement of more than thirty (30) days, may only be made pursuant to a
1946 Notice.
~

E.
Privacy Provisions Applicable to Notices. In order to protect the privacy of
Tenants, the Regulations shall include provisions regarding public access to notices filed
pursuant to this Section 8.22.130.
18

G.Terminating Tenancy to Rehabilitate Covered Unit. An Owner seeking to vacate a

Covered Unit in order to rehabilitate the Covered Unit must, prior to serving the Tenant \'-lith
a 1946 Notice, obtain a building permit from the City of Oakland, if a permit is required for
the 'Nark to be performed. A copy of the building permit must be attached to the 1946
Notice. An Owner's failure to obtain permit in advance of serving the 1946 Notice is a
defense to an unlawful detainer action brought based on the 1946 Notice.

8.22.140 -Unlawful Terminations of Tenancies for Increasing Rent After 1946

Termination of Tenancy.
A. Purpose of Section. This Section sets forth conduct constituting an unlawful
termination of tenancy based on an Owner increasing the Rent to a new Tenant following a
vacancy and the remedies available to the Tenant who vacated. This Section 8.22.140
applies to only Covered Units exempt from the Just Cause for Eviction Ordinance [Measure
EE Subsection SF (properties containing three or fewer dwelling units where one of the units
is owner occupied)].

--B. B.

Conduct Constituting Unlawful Termination of Tenancy.

1. Rent or Rent Incre'8se to Subsequent Tenant in Excess of Permitted Amount. A
tenancy is considered to have been unlawfully terminated when both of the following occur:
a. The Tenant vacates a Covered Unit under circumstances where an Owner
may not set an initial Rent to the following Tenant pursuant to Costa-Hawkins (Section
8.22.080 C); and
b. The Owner increased the Rent for the new Tenant in excess of the amount
permitted by Section 8.22.080 within the first twelve (12) months following the vacancy.
2. Unlawful Termination of Tenancy After Impermissible Rent Increase. This
Subsection sets forth the requirements for when a Tenant may bring an administrative
action or claim for unlawful termination of tenancy because the Tenant vacated after
receiving a Rent increase or other change in terms of tenancy not permitted by this Chapter
8.22. Article I. A Tenant may bring an administrative or legal claim pursuant to this Section
when the following occur:
a. The Owner gave the Tenant a notice of a Rent increase in excess of the CPI
Rent Adjustment or notice of other change of terms of tenancy that constitute a decrease in
housing services equivalent to a Rent increase in excess of the CPI; and
b. The Rent increase notice did not conform with the requirements of Section
8.22.070 H (Rent increase notice requirements); and
c. The Tenant vacates before the increased Rent is due; or
d. The Tenant vacates following a notice to pay rent or quit for non-payment of
the increased amount in excess of the CPI Rent Adjustment provided that such notice to pay
rent or quit is served within sixty (60) days following the date the Rent increase is first due.
3. Subsequent Tenancies Created to Evade Vacancy Rent Restrictions ("Sham
Tenancies").
a. This Section applies where an Owner creates a short-term tenancy for the
purpose of evading the Rent increase restrictions in Section 08.22.080.
b. A rebuttable presumption of an unlawful termination of tenancy exists when all
of the following apply:
.
i. An in(tial vacancy occurred under circumstances in which the City can
regulate the initial Rent to the new Tenant (Section 8.22.080 C);
19

ii. 'A sUbsequent vacancy occurred when the first new Tenant vacated within
less than twelve (12) months following the initial vacancy; and
,,"
"
iii. The Rent to the second new Tenant exceeds the amount that could have
been charged to the first new Tenant.
c. The Owner can rebut the presumption of an unlawful termination of tenancy by
demonstrating that the Owner did not enter into the tenancy following the initial vacancy in
order to create a second vacancy for the purpose of evading the Rent increase restrictions
in Section 8.22.080.

--G. C.

Remedies for Unlawful Terminations of Tenancies.

1. Administrative Remedies - Relocation Restitution.
a. A Tenant displaced by an unlawful termination of tenancy shall be entitled to
an order for restitution of relocation costs in the set amount of $1,000 plus two months of the
"HU D Fair Market Rent" for the type of unit that was vacated by the displaced Tenant.
i. "HUD Fair Market Rent" means the amount specified in the schedule of
Fair Market Rents for existing housing published by the United States Department of
, Housing and Urban Development under Section 8 of the United States Housing Act of 1937,
as amended, applicable to the City of Oakland and current as of the date the displaced
Tenant vacated the unit. If the "HUD Fair Market Rent" standard ceases to exist, the
Regulations shall set a standard that is comparable to the "HUD Fair Market Rent". ,
b. A Tenant seeking the relocation restitution must file a petition with the Rent
Adjustment Program in accordance with the procedures set forth in Section 8.22.090. The
hearing on the Tenant's petition will follow the procedures set forth in Section 8.22.110.
Either party may appeal the Hearing Officer's decision to the Board in accordance with
Section 8.22.120. If a Tenant prevails and the Owner fails to pay, the Tenant may seek
redress in court to enforce the restitution order.
c. An Owner who violates Section 8.22.080 more than once must pay two times
the amount of the relocation restitution for the second violation. Each successive violation
following will result in an additional doubling of the amount the Owner must pay. Concurrent
initial violations shall not result in a doubling of the amount payable. Any amount by which
the amount payable for a subsequent violation exceeds the calculated restitution for
relocation pursuant to Section 8.22.140 C.1.a, above, shall be not be paid to the displaced
Tenant, but shall retained by the City as a civil penalty which shall be used to fund
affordable housing.
d. Time to Petition. A Tenant must file a petition pursuant to this Section: '
i. Within twelve (12) months following the date the Tenant discovered the
violation (the unlawful Rent increase), or
ii. If the Tenant vacated following a 1946 Notice and the notice did not
conform to the requirements of Section 8.22.130, the Tenant must file the petition within
twenty-four months following the date the Tenant discovered the violation (the unlawful Rent
increase).
2. Civil Damages for Unlawful Termination Following Certain Vacancies.
a. A violation of Section 8.22.080 may also give rise to a civil claim for wrongful
eviction in favor of the Tenant whose tenancy is so terminated and such Tenant may bring a
civil claim against a violating Owner. The City Attorney~ on the Tenant's behalf, may bring a
claim for civil damages a~ainst a violating Owner who has multiple violations of Section
8.22.080.
b. In any civil action seeking damages for a violation of this Section, the court
may award attorney's fees to a prevailing Tenant in an amount determined by the court as
20

reasonable. In order for the court to award attorney's fees, the Tenant must first have
petitioned the Rent Adjustment Program for relocation restitution under Section 8.22.140

C.1.
c. Time to Bring Action. A Tenant must bring a civil action for violation of this
Section:
i. Within twelve (12) months following final action on a petition filed with the
Rent Adjustment Program pursuant to this Section, or
ii. If no petition was filed, within twenty-four (24) months following the date the
Tenant discovered the violation (the unlawful Rent increase), or
iii. If the Tenant vacated following a 1946 Notice that did not substantially
conform to the requirements of Section 8.22.130, the Tenant must file the action within
thirty-six (36) months following the date the Tenant discovered the violation (the unlawful
Rent increase).
3. An Owner is not subject to the remedies set out in this Section if the Owner
proves that the Rent charged to the subsequent Tenant exceeds by an insubstantial amount
the Rent that could be charged under Section 8.22.080 (Rent increases following
vacancies), and the excess was charged in good faith as a result of a unintentional error or-other mistake of fact.

-D. D.
Pattern or Practice of Raising Rents Following 1946 Termination of
Tenancy. A Tenant who has received a 1946 Notice from an Owner may defend against an
unlawful detainer action based on the 1946 Notice by proving the Owner has a pattern or
practice of terminating tenancies by a 1946 Notice and raising rents above those permitted
by Section 8.22.080. Jf the Tenant proves the allegations, in addition to a defense against
the immediate unlawful detainer, the Tenant is entitled to a rebuttable presumption for the
six months following the date of the Court's decision that any 1946 Notice is unlawful. An
Owner who has been found to have violated Section 8.22.140 pursuant to Subsection
8.22.140 C onmore than one occasion is presumed to have a pattern and practice of
evicting tenants to increase Rents.
-E-. E.
Remedies Cumulative and Not Exclusive. The remedies available pursuant
to this Section are cumulative and not exclusive of any other remedies by statute, common
law, or this Chapter.
8.22.150 Retaliatory Evictions.

An Owner may not recover possession of a Covered Unit in retaliation against a Tenant
for exercising rights under this Chapter. If an Owner attempts to terminate the Tenancy of a
Tenant who files a petition under this Chapter from the date the petition filing to within six
months after the notice of final decision, such termination of tenancy will be rebuttably
presumed to be in retaliation against the Tenant for the exercise rights under this Chapter.
8.22.160 Voluntary Mediation of Evictions.

The Rent Arbitration Program will assist in making voluntary mediation of evictions in
Covered Units available to Tenants and Owners prior to an unlawful detainer lawsuit being
filed.
8.22.170 General Remedies.

-A: A.

Violations of Chapter 8.22.

1. Violations of Orders or Decisions. Failure of a party to abide by an order or

21

decision of a Hearing Officer and/or the Board shall be deemed a violation of Chapter 8.22
and shall be punishable administratively or by civil remedies unless othervviseprovided in
this Chapter.
2. Violations of Chapter 8.22. Violations of Chapter 8.22 may be enforced
administratively or by civil remedies as set forth in this Section or as othervvise specifically
set out in this Chapter.
3. In addition to the remedies provided in this Chapter, a violator is liable for such
costs, expenses, and disbursements paid or incurred by the City in abatement and
prosecution of the violation.
4. The remedies available in this Chapter are not exclusive and may be used
cumulatively with any other remedies in this Chapter or at law.
5. Remedies for violations of Section 8.22.080 are set out in that Section.
-8-. B.
General Administrative Remedies.
1. Administrative Citation. Anyone who violates specified provisions of Chapter 8.22
may be issued an administrative citation. Administrative citations shall be issued in
accordance with GMGO.M.C Chapter 1.12 (Administrative Citations). The specified sections
of Chapter 8.22 that may be enforced by administrative citation shall be set out in the
Regulations.
2. Administrative Assessment of Civil Penalties. Anyone who violates specified
provisions of Chapter 8.22 may be administratively assessed a civil penalty. Civil penalties
for violations are assessed in accordance with GMGO.M.C Chapter 1.08 (Administrative
Assessment of Civil Penalties) as a major violation under that Chapter 1.08. Specified
sections of Chapter 8.22 that may be enforced with civil penalties shall be set out in the
Regulations.
3. The City-Manager shall designate staff authorized to issue administrative citation
and civil penalties.
4. Each and every day or any portion of a day during which a violation of any
provision of this Chapter is committed, continued, or permitted is a separate violation and
shall be punishable accordingly.

--c, C.
General Civil Remedies.
An aggrieved party or the City Attorney, on behalf of such party, may bring a civil action for
injunctive relief or damages, or both, for any violation of the provisions of this Chapter or an
order or decision issued by a Hearing Officer or the Board.
8.22.180 Rent Program Service Fee.
A.Establishment of the Fee. The Rent Program Service Fee (the "Fee") is hereby
established. The Fee and any penalties or costs for late or non payment of the Fee are
dedicated solely to the payment of sep/ices and costs of the Rent Adjustment Program and
may be used only for the administration, outreach, legal needs, enforcement of Chapter 8.22
(including the Rent Adjustment Program and the Just Cause for Eviction Ordinance),
collection of this Fee, and other costs of the Rent Adjustment Program and cannot be used
for any other purpose. The City Manager shall develop procedures for collection of the Fee
and ensuring that all funds generated by the Fee will be used only for the Rent Adjustment
Program.
I

B.,C"mount of Fee. The amount of the Fee shall be set by the City Council in the Master
Fee Schedule. The Fee is set at $24.00 per Covered Unit for the City's fiscal years of 2001
22

th~::

G"'nor

t mlno 10

asseGlate~':'OI

faGt ing ;:idenGe in any d:'d":eiling unil is exemp .

.
"'th the operation 01
be uS: whethor tho subjeG
F 0 is a lee
reai property.
don ownors Ie
regar
ration. The e
Businoss Gpo
d not a lee base
n Marsh
D.Foo
business an
002 the Foe will be d:e : fiscal
a rosidentlal re
. 'fssai year 012001 1 2002. For all subs
by March
For the I""" I .
aid by Mal',
.
ent il not pal u nt
E Due Date ler Fee. ed deiinquentll
be deemed
A 1 (subsidized or st

Baso~~;roperty

no~~"II

dell~i~

~ ;~ ~h~n=e:il~l ; biif~~~~:::sJ~:~~Z~~t~:~ ~i'~ett;'::~:t~;:~i:~ ~~:te~e~~:~er

~
reg~the
throug~ ~:e
G":~wner
?~iCh
unIOSSt~~U9h
'''hen a dwe IA,
Sesllon 8..
. bing reoGcup,e
1. 'ijted dweiling units) r ofth e dweiling unil -e Fee within 30 DaTs
'" r may pass

mu

e hall 01 th e Fee:'t
Fee belere the a e
a
parF.Passthrough
e
Hall
01
Foo.
An
does
not
parelinqUent
Gharges.
or
il is due,
any penalties, d
. tRe year 01
In n
v not f3ass
Tenant In m_
An Gwner may
I ted to a
it is deemed late. 'j'
nd any Gharges re a
we has not paid the Foo a
intorest to a Tenan .
t Gwner nf\ n O'lmer wHOot"
G.Delinquen- -:;ont'ol the Foo
a Tenant; or
Elelinquency In f3:~o a f3etition brouRt J
1.Re~~on
Rent increase.

san:~-ihe

C~~;::'
SGh~;h~
GOnS~de:
~nGY d~es ~hOg~: ~.
~
~
~~O Ii~'~~nerG~nsid
G.50%~ pal~h~~~iinqUenlGharg~~h::'t;
~e:h~

2.Petltlon ler a

nd Coilection Cosls. the date it is Gonsidered late

die'
.
d lata.
es Interest, 0
F e on or bolero
not pay
the leilowing
date it is
late;'
H.Dolinquent
1.An
Gwner
30 Days
Days0, the dato it is GonSI or
ya delinquo
0
duo aGcor"
il pal" In
In luil '''ithini0
0 Ghargo
mUGt pa- 1 % olth Feed
paid in Iu iI WithlA
ored lato.
'lth0 Fee due by
t
b:25% 01 tho lee
Days ollhe date
who fails 10 reml
or lrastion
il to
alone
peroe;t
date the Feo IS
2.1n addition
, 'm Ie interest a
. uent
Gharges
ra
onth
the dato it is late shail,

~~~h~ F~e inGlusive 01 dellAq

the amoun,
thoreol on
iat<h 3.An Gwner who

etto~~;
~h~nterest, GOile~~o:

ha~:,~psosts
d

I "ear in whiGh it is due

d 01 tho I1SGO ,
aid the Fee by the en Foe:inGIUding any
01 soileGtlng
and

noy's lees.
imposed
:n a residential

al:oT~:~::::~:l~:y
82~';~:~:~e~::~nitsdae~::~~:i::~~h;n~::~~:re~:;~~~::~~h:o~:s~1
Wit~out ~:y~:~ion~n
Ok

FO:
may
by Chapter
rental bUSiness
interest
or co He ';;i~n sosls shail be liab a In

23

the name 01 tho

competent jurisdiction, for the amount of the Fee and any tax and delinquent charges, . .
interest or collection costs imposed. An action to collect the Fee must be commenced ....lIthln
three years of the date the Fee became due. An action to collect delinquent charges,
interest or collection costs for nonpayment of the Fee must be commenced 'Nithin three
years of the date such accrues.
I.Sunset. The Fee '.vill sunset on June 30, 2003 unless the City Council acts to continue
it by reinstating the Fee in the Master Fee Schedule.

8.22.1908.22.180 Computation of Time.

In this Chapter, days are computed using calendar days unless otherwise specifically
stated. Date of service of any matter under this Chapter is the date the matter is placed in
the mail (in which case the time for responding is extended by five days) or the date of
receipt for a matter personally served. Timely filing requires receipt by the Rent Arbitration
Program on or before 5:00 p.m. on the last day to file the document as prescribed in this
Chapter or the Regulati6'ns. If the last day to file is a weekend or holiday the period of time
to file the document is extended to the next business day. The Rent Arbitration Program
. may establish rules and procedures to accept electronic filing of certain documents.
8.22.2008.22.190 Severability.
This Chapter shall be liberally construed to achieve its purposes and preserve its validity.
If any provision or clause of this Chapter or application thereof to any person or
circumstances is held invalid, such invalidity shall not affect other provisions or applications
of this Chapter which can be given effect without the invalid provision or application; and to
this end the provisions of this Chapter are declared to be severable and are intended to
have independent validity.
8.22.2108.22.200 Nonwaiverability.
Any provision, whether oral or written, in or pertaining to a rental agreement whereby any
provision of this Chapter is waived or modified, is against public policy and void.
8.22.2208.22.210 Applicability-Effective date of Chapter 8.22.Article I.
The ordinance codified in this Chapter shall take effect as follows:
/\.The Fee. The Fee established herein shall be implemented in accordance with the
schedule set forth in Section 8.22.0108.22.180;

-B. A.
The CPI Rent Adjustment. The CPI Rent Adjustment is effective for Rent
increases taking effect on or after July 1, 2002 in accordance with Section 8.22.070 B.1;
C.vacancy Rent Adjustment. Nevi provisions regarding increasing Rents follmving
vacancies (Section 8.22.080), 1946 Termination of Tenancy notice requirements (Section
8.22.130) and the penalties for improperly increasing Rents following vacancies (Section
8.22.140) take effect for all vacancies noticed on or after July 1,2002.
--Q, B.
Other Provisions. All other provisions of this Chapter take effect pursuant to
Section 216 of the Oakland City Charter. Whenever a new Section takes effect on a date
after this amended Chapter takes effect pursuant to Section 216 of the Oakland City
Charter, the provisions of the former Chapter 8.22 will apply.

24

IN COUNCIL, OAKLAND, CALIFORNIA,

,2002

PASSED BY THE FOLLOWING VOTE:

AYES-

BROOKS, BRUNNER, CHANG, MAYNE, NADEL, QUAN, REID, WAN,

AND PRESIDENT DE LA FUENTE

NOESABSENTABSTENTION-

ATTEST:
CEDA FLOYD
City Clerk and Clerk of the Council
of the City of Oakland, California

2S

 l'
~

CITY OF OAKLAND
AGENDA REPORT

~_

~: :-1
... '...J

OFFICE OF ni[ CIT Y CLERK

(, ,2., :.~ L t. ND

2003 HAY -I

PH~:

TO:
ATTN:
FROM:
DATE:

Office of the City Manager

Robert C. Bobb
Community and Economic Development Agency
May 13,2003

RE:

SUPPLEMENTAL REPORT TO AN ORDINANCE RECODIFYING THE

RENT PROGRAM SERVICE FEE TO A NEW ARTICLE IN OAKLAND
MUNICIPAL CODE CHAPTER 8.22 AND APPLYING THE FEE TO
RESIDENTIAL RENTAL UNITS COVERED BY THE JUST CAUSE
EVICTION ORDINANCE (MEASURE EE)

17

SUMMARY
This report explains the amount and source of revenues and the expenditures of the Rent
Adjustment Program (RAP). It is written in response to a request made by members of the
Community and Economic Development Committee for information on RAP revenue, and
expenditures on April 15, 2003.
RENT PROGRAM SERVICE FEE
Funding for Rent Board and Program operations is derived exclusively from the $24 per unit
annual service fee adopted by the Council last year. The fee is charged to owners of rental units
covered under the Rent Ordinance. Owners may pass on half of the fee to tenants.
In the June 19, 2001 report to the City Council recommending adoption of the fee, the total
projected fee revenue was $1,520,136, based on 63,339 estimated fee paying units. Total
expenditures were estimated to be $1,438,879, with personnel costs being the largest single item
of expenditure. Total personnel costs, including fringe benefits, were estimated to be $1,263,879
for 12 FTE positions, plus the cost of City Attorney services. This staffing was estimated
sufficient to process 450 petitions per year. However, the action of the Council included
exempting more than 10,000 units which resulted in reduced projected revenue.
PRIOR FUNDING AND STAFF
Prior to adoption of the fee, the Rent Adjustment Program was funded entirely out of the General
Fund. It was an activity within Housing and Community Development (HCD). Program staff
consisted of a single employee, an administrative assistant and volunteer hearing officers. This
staff was sufficient for the workload.
In 1996, 105 petitions were filed and reviewed. In 1997, that number rose to 115. In 1998, the
number jumped to 199. In 1999, the number grew to 220 petitions and continued to grow to a
Item:

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CED Committee
May 13, 2003

Robert C. Bobb
May 3, 2003

Page No.2

high of 677 in 2001. To keep up with the increasing workload, program staff was increased. In
1999, two analysts were transferred from other HCD programs to the RAP. In December 2000,
a senior hearing officer was hired, and an additional hearing officer and one additional analyst
were hired in early 2001. All of the positions, except the two original employees and the two
transferred employees, were temporary. By the end ofFY 00-01, there were 7.0 FTEs actually
working on the program.
The RAP was not a separate accounting entity, either as a project or as an organization, until FY
01-02. Because expenditures were not separate from CEDAlHCD, a detailed accounting of the
programs expenditures prior to the creation of the Rent Adjustment accounting entity in FY 0001 cannot be done.
SUMMARY OF FY 01-02 BUDGET

The actual revenues for FY 01-02, the first year of service fee collection were $1,067,197. 1
Almost none of that sum was late fees, interest or penalties, because collection began in FY 0203. The revenue was $456,952 less than projected. The revenue shortfall in the budget was
balanced by the savings resulting from vacant positions and increased operating efficiency. The
program was never fully staffed during the fiscal year. The number of filled positions varied
throughout the year as staff was hired, left or went on leave. On June 30, 2002, there were 12
FTE positions authorized. One position was vacant. Four of the occupied positions were on
leave. The actual working staff present was 8, plus one clerical temporary agency employee.
Authorized staff:

Staff present and working at year end

1 Manager
1 Senior Hearing Officer
3 Hearing Officers
4 Analysts
3 Administrative Assistants

1 Manager
2 Hearing Officers
3 Analysts
2 Administrative Assistants

SUMMARY OF EXPENDITURES FY 01-02

Expenditures for FY 01-02 are shown on the table below. The total program expenditure was
$1,034,831. The largest categories of expenses were personnel costs, $629,016 (61 %) of the
total and City Attorney services, $216,926 (21 %). Operating and maintenance expenses were
$188,890 (18%). Of these, the largest were for the service fee billing ($19,487) and purchase of
new computers ($15,140).

Item:~===lI~==

CED Committee
May 3, 2003

Robert C. Bobb
May 3, 2003

Page No.3

SUMMARY OF FY 02-03 BUDGET

Through March, 2003, the Program has collected $793,836 2 in fees out of the budgeted
$1,524,150. The amount collected includes about $100,000 in late fees and penalties from last
fiscal year as a result of collection efforts made by RAP staff. Collection efforts are hampered
because there is no definitive way to identify units that are covered or not covered under the Rent
Ordinance.
Again during this fiscal year, the full complement of 12 FTEs was never available and working.
At present we have 9 FTEs, one is out on medical leave. Two Hearing Officer positions are
vacant.
Authorized staff:
1 Program manager
1 Senior Hearing Officer
3 Hearing Officers
4 Analysts
3 Administrative Assistants

Staff on duty at present:

1 Program manager
1 Hearing Officer
4 Analysts
3 Administrative Assistants

SUMMARY OF EXPENDITURES FY02-03

The actual expenditures for the first three quarters of FY02-03 are shown on the table that
follows. In order to permit a comparison, those amounts are extended to create estimates of
expenses for the full fiscal year. The estimated total program expenditure is $1,207,288.39. The
largest categories of estimated expenses are personnel costs, $888,887.97 (74%) of the total and
City Attorney services, $180,000.00 (15%)3. Operating and maintenance expenses are estimated

2
3

A copy of the Funds Available Analysis Report for the first 10 months of FY 02-03 is attached as Exhibit B.
This estimate does not include an overhead charge.
Item:

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CED Committee
May 3, 2003

Robert C. Bobb
May 3, 2003

Page No.4

as $138,404.42 (11 %)4. Of these, the largest were for the service fee billing ($19,487.03) and
purchase of new computers ($15,139.54).

on
YTD. Adopted
budget authorized 12
FTE in Rent
Adjustment plus City
Attorney staff time

FY 03-04 BUDGETARY CONCERNS

Revenues generated by the fee fell short of expectations in the first fiscal year of operation.
Revenues collected through December 2002 for FY 2001-2002 totaled slightly more than $ 1.1
million. This was almost $300,000 less than projected. However, lower than anticipated
revenues is not unusual during the initial year of a new program and was balanced by reduced
expenditures during the same year. In addition, the reduction in the number of covered units
noted above reduced projected revenues by $250,000.
Revenue expectations for FY 2003-05 based on the prior two years' revenue experience and the
addition of the units covered under Just Cause will be estimated to $1.4 million. This will
require a reduction in staff and other expenditures that are proposed for the 2003-05 budget.

This estimate does not include unposted charges for mailing and planned expenditures for equipment and
furniture.

Item:~~~~=

CED Committee
May 3, 2003

Robert C. Bobb
May 3, 2003

Page No.5

At the present rate of petition filing, it is projected that 522 petitions will be filed this year. This
number of petitions is 16% greater than the projected workload for the budgeted RAP staff
before any reductions. This staff shortage is presently being offset by program efficiencies.
However, it is absolutely clear that present staffing is not sufficient to perfonn the additional
tasks mandated by the Just Cause for Eviction Initiative. This leads to the staffs
recommendation proposed in the original staff report
PROGRAM ACTIVITIES

The increased funds and additional staff that resulted from the Rent Service Fee were used to
organize the program and implement the Rent Adjustment Ordinance. To provide infonnation
on the results obtained for the funds spent, the following summary report that was presented to
the Housing, Residential Rent and Relocation Board (HRRRB) in early April 2003 is reproduced
below with modifications.
In general, the period July 2002-February 2003 was one of intense work on the part of all staff
members. The major achievements have been:

The backlog of hearing decisions pending for more than 120 days was reduced from
more than 630 in May 2000 to the 1999 level ofless than 100.

Fonns and procedures, including an expanded administrative decision process, were

implemented to streamline the decision process. Very popular among these is a time
stamp and drop box installed in the lobby of the Program offices for filing of documents
with the Program.

Most of the substantive and procedural changes required by the new Ordinance
(effective July 1,2002) were devised and implemented.

A Rent Program Fee database was constructed. Fee data collected during the first half of
2002 was entered. This pennitted the RAP to bill and track payments by the more than
20,000 Oakland landlords and approximately 60,000 rental units covered by the Rent
Adjustment Ordinance.

More than 11,000 follow-up letters were sent to landlords who did not respond to the
2002-2003 service fee bills.

More than 23,000 bills for the 2003-2004 service fees were mailed on time.

A database was constructed to track the status of pending cases, and available data from
January 1, 1999 to the present was entered.

Item:~~~~=

CED Committee
May 3, 2003

Robert C. Bobb
May 3,2003

Page No.6

Every single case file from 1999 to the present was audited to identify and retrieve
pending cases that might have "fallen through the cracks" in the system.

A community outreach program was begun. To date more than 30 meetings have been
held with both landlord and tenant-oriented community groups to explain the Rent
Adjustment Program. The groups included landlord and tenant representatives, title
companies, CBDG district boards, associations of realtors and legal service
organizations. Informational materials, including the Rent Adjustment Ordinance have
been translated into Spanish and Chinese. Brochures describing the RAP have been
distributed to libraries and other public locations.

Procedures required by the Just Cause Initiative have begun to be implemented. All
three day notices served in the City of Oakland and filed with the Rent Program are
being indexed. The program has begun to scan and store the notices in computer format.
This project will be completed when the equipment on order arrives.

None of these projects is complete, but the process of building a workable and efficient program
has begun in earnest. The following is a summary assessment the program's present status with
an emphasis on the problems yet to be solved.
PETITIONS FILED

In calendar year 2001, 677 cases were filed. The total number of tenant petitions filed during
2002 was 431, a decrease of 35%. In both 2001 and 2002, landlord petitions were less than 2.5%
of the total petitions filed and slightly more than 98% were tenant petitions.
Beginning in January 2003, petition filings have again begun to increase. In both January and
February the number of petitions filed increased from a year earlier. At the current rate, staff
projects that 522 petitions will be filed in calendar year 2003. The forecast is an increase of
about 17% over 2002. No landlord petitions were filed in January or February 2003.
The following chart provides monthly data of the petitions filed in a visual format for years
2001,2002, and 2003.

Item:
CED Committee
May 3, 2003

Robert C. Bobb
May 13, 2003

Page No.7

Petitiohs . fi

by Month

.2003
lIl2002
D2001

The annual totals for the three years are shown on the following chart:
-

Petitions by Calendar Year

800

-g

i.i:
I-

~
:::I

~-~

600

iirj-2001

1_ 2002

400

02003

200

o
Year

"-------------------------~~----~

DECISIONS ISSUED
The number of decisions issued has increased dramatically beginning in May 2000. During the
entire period, the number of decisions issued has been greater than the number of petitions filed
resulting in a reduction of cases pending a hearing decision more than 120 days.

ltem:_

CED Committee
May 13,2003

Robert C. Bobb
May 13,2003

Page No.8

The initial increase in the number of decisions issued is explained by an increase in staff that was
made possible by adoption of the user service fee. From the last quarter of calendar year 2002 to
the present, the increased number of decisions issued, as compared to previous years, is a result
of increased efficiencies in the petition process. The total number of decisions issued monthly
during the period from January 1, 2001 to the present is shown on the following chart. The
information on this chart is subject to slight modification, as the audit of landlord petition files is
not yet complete.
-

Decisions Issued by Month

300
250
200
150
100
50

lI8'" 2001

.2002

lI8 2003

r--~,-----~~~---,--~~~~~---,--~-----,-~--,-~-.---,--~,----~,---.--~

'7

12

19
266

16
'71

20
59

02003
The total number of decisions issued by hearing officers, including administrative decisions, but
excluding appeal decisions is shown on the following chart. The number for year 2003 includes
decisions issued through March, 2003.
l

Decisions Issued by Year

1000
~
800
en
.!!l 600
en
'a
CD

l:

.2

.~

400200

~20011
.2002
02003

CD

Year

Item:

_
CED Committee
May 13, 2003

Robert C. Bobb
May 3, 2003

Page No.9

PENDING CASES

The number of cases filed in 2002 declined from 2001. Also, during the same period the time
from filing to decision has been greatly reduced. The combination of both factors has resulted in
a precipitous decrease in the number of cases pending a hearing decision more than 120 days
from a high of more than 635 cases from September 2001 through May 2002 to the present
number, less than 100.
The number of cases pending more than 120 days at the end of each month from January 2001 to
the present is shown on the following chart. The chart is really based on a query that is still
experimental. The numbers shown on the chart are useful as an approximation only. Staff
believes that the information is accurate to within 10%, sufficient accuracy for purposes of
illustration.
~~~~------

C8.se5 P

nd Inn

Dec.> 120 Days

700

600

500

..

400

300

200

100

.,"

APPEALS

Considering the number of decisions issued during the past eight months, it is no surprise that the
number of appeals pending has increased. On March 15, 2003 there were about 102 appeals at
different stages of the appeal process [exclusive of the 1998 1200 Lakeshore case involving
many units that was reversed by a court and sent back to the program for further proceedings].
Twenty-five of the pending appeals have been heard and decided by the Board and are awaiting a
draft decision or Board approval of the written decision. The remaining 77 cases have not yet
been heard. In addition, the approximately 30 consolidated cases in the appeal of the decision on
remand of the 1998 1200 Lake Shore cases are pending.

Item:==~~_

CED Committee
May 3,2003

Robert C. Bobb
May 3,2003

Page No. 10

Some measures have already been undertaken to reduce the number of pending appeals:
enforcement of the time limit on oral presentation by the parties adopted in the Regulations;
limiting the issues raised by the parties to those stated in the appeal; and remand to a hearing
officer of all cases requiring the consideration of new evidence. Now that the board has an
almost full complement of members, the panel system for simple appeals will be re-activated.
Staff has no definite explanation for the increased rate of appeals, but is currently studying the
problem with a view to reducing the appeals to a more reasonable level. While the quantity of
appeals has increased, the quality has decreased. During this period, three appeals were filed by
parties who won their cases completely. Two appeals were filed that stated no ground
whatsoever, and an increase in the number of untimely appeals has been noted by staff. When
the fee was adopted, the filing fee charged for appeals was dropped. Perhaps, this is also a
factor.
As part of the ongoing revision of the appeals process, the appeals form was redesigned to
require an appellant to identify one of the specific grounds for the appeal permitted by
regulation. Each appeal is being reviewed several times by staff members at different times
during the process to ensure that the appeal meets the requirements for filing and to see if
reconsideration of the hearing decision is appropriate. Staff expects that these measures will
reduce the number of unnecessary for appeals that reach the Board.
STAFFING

During the last half of 2002, there was a 100% turnover of hearing officers. At present, there is
only one hearing officer. A second hearing officer is being recruited. In the interim, the
Program Manager has been acting as hearing officer, when necessary. If the number of petitions
does not increase further, it is anticipated that two FTE hearing officers will be sufficient to
handle the workload.
The program has a full complement of analysts. The vacant position for an administrative
assistant was filled during this period. There are no clerical staff positions vacant.
ACTION REQUESTED OF THE CITY COUNCIL

The present funding is barely sufficient to process the present Rent Adjustment caseload. As
described more fully in the initial report to the City Council on this matter, there is no funding
available for staff to do tasks mandated by the Just Cause for Eviction Ordinance (Measure EE).

Item:

CED Committee
May 3,2003

Robert C. Bobb
May 13,2003

Page No. 11

Staff recommends that the City Council approve the Ordinance repealing sections 8.22.130 and
8.22.140 of the OMC and the Ordinance extending the $24 Service Fee through the budget cycle
2003-05, and apply the Service Fee to units newly covered by the Just Cause for Eviction
Ordinance (Measure EE).
Respectfully submitted,

APPROVED AND FORWARDED TO THE

COMMUNITY AND ECONOMIC
DEVELOPMENT COMMITTEE
Prepared by:
Roy L. Schweyer, Director
Housing and Community Development
Rick Nemcik-Cruz
Rent Adjustment Manager

/0

Item:_
CED Committee
May 13,2003

~ll

I:"r'I

1-.. i.. ......

OFfiCE OF THE CITY CLERIC:

0 ..... :': L t. ~PPROVED AS TO FORM AND LEGALITY
INTRODUCED BY COUNCILMEMBER

Z003 MAR 27 PM 12: ,,:H8-----:C=ITY::-:""A-=-=n=o-=-:-RN=Ey-:---

OROlNANCE NO. - - - - -C.M.S.

AN ORDINANCE RECODIFYING THE RENT PROGRAM SERVICE
FEE TO A NEW ARTICLE IN OAKLAND MUNICIPAL CODE
CHAPTER 8.22 AND APPLYING THE FEE TO RESIDENTIAL
RENTAL UNITS COVERED BY THE JUST CAUSE FOR EVICTION
ORDINANCE (MEASURE EE)
WHEREAS, the Rent Program Service Fee originally established at O.M.C. 8.22.180 applies to
only those units that are covered under the Rent Adjustment Ordinance (O.M.C. Chapter 8.22,
Article I);
WHEREAS, the Just Cause for Eviction Ordinance (Measure EE) gives the Rent Program
administration significant additional responsibilities in carrying out that Ordinance's mandates
including: Information to tenants, accepting filings, retrieving filings (including redacting
confidential information), holding hearings and possible appeals and further legal action on certain
rent disputes (setting comparable rents and rents after rehabilitation) and disputes over elderly,
disabled, or catastrophically ill status for owner-occupancy evictions, and adopting regulations;
WHEREAS, in addition to the mandatory responsibilities for the Rent Program, additional
administrative tasks will fallon the Rent Program and City Attorney's Office, including
dissemination of informative material, workshops and counseling, and litigation involved the Just
Cause for Eviction Ordinance;
WHEREAS, there are a significant number of additional residential rental units that are subject to
. the Just Cause for Eviction Ordnance that are not also covered by the Rent Adjustment
Ordinance, which number is estimated to be in excess of 19,000, and includes principally singlefamily units, condominiums, units on the Section 8 federal housing subsidy program, and
substantially rehabilitated units;
WHEREAS, the Just Cause for Eviction Ordinance does not provide its own independent funding
source and the existing fee, applicable to residential rental units covered by the Rent Adjustment
Ordinance is insufficient to cover the costs of administration for the additional responsibilities for
the Rent Adjustment Program for the units subject to the Just Cause for Eviction Ordinance, but
exempt from the Rent Adjustment Ordinance;
Whereas, rental units exempt from the Rent Adjustment Program currently use Rent Adjustment
Program services in determining whether such units are, in fact, exempt from the Rent Adjustment
Program;
WHEREAS, applying the Rent Program Service Fee to the residential rental units that are subject
to the Just Cause for Eviction Ordinance, but are not covered by the Rent Adjustment Ordinance

If)

Service Fee Ordinance

COMMUNio,V !i ECOi~OM1C
DEVELOPMENT CMTE

WW 1 32U03

would reasonably approximate the additional cost of servicing these units by the Rent Adjustment
Program.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN THAT CHAPTER 8.22 OF
THE OAKLAND MUNICIPAL CODE IS HEREBY AMENDED TO ADD ARTICLE IV AS FOLLOWS:

CHAPTER 8.22
RESIDENTIAL RENT ADJUSTMENTS AND EVICTIONS
ARTICLE IV
RENT PROGRAM SERVICE FEE
8.22.500 Rent Program Service Fee.
A. Establishment of the Fee. The Rent Program Service Fee (the "Fee") is hereby established.
The Fee and any penalties or costs for late or non payment of the Fee are dedicated solely to the
payment of services and costs of the Rent Adjustment Program and may be used only for the
administration, outreach, legal needs, enforcement of Chapter 8.22 (including the Rent
Adjustment Program and the Just Cause for Eviction Ordinance), collection of this Fee, and other
costs of the Rent Adjustment Program and cannot be used for any other purpose. The City
Manager shall develop procedures for collection of the Fee and ensuring that all funds generated
by the Fee will be used only for the Rent Adjustment Program. The Fee is to be charged against
any residential rental unit that is SUbject to either the Rent Adjustment Ordinance, the Just Cause
for Eviction Ordinance, or both.

8. Definitions.
1. "Rental Property Owner" includes an Owner as defined in the Rent Adjustment
Ordinance (O.M.C. 8.22.020) or a Landlord as defined in the Just Cause for Eviction Ordinance
(Measure EE, Section 4A).
2. "Tenant" has the same meaning as that term is defined in the Rent Adjustment
Ordinance (O.M.C. 8.22.020).
C. Amount of Fee. The amount of the Fee shall be set by the City Council in the Master Fee
Schedule. For the City's fiscal years of 2001 - 2002, and 2002 - 2003 the Fee is set at $24.00
per Covered Unit Each fiscal year the City Manager shall report to the City Council on the costs of
the Rent Adjustment Program for the preceding fiscal year and the anticipated costs of the Rent
Adjustment Program for the coming year.
D. Residential Rental Units Subject to the Fee. The Fee is to be charged on a per unit basis
against all residential rental units that are either Covered Units or are covered by the Just Cause
for Eviction Ordinance. A Rental Property Owner who does not timely pay the Fee because the
Rental Property Owner claims the dwelling unit is not sLlbject to the Fee must pay all Fees,
delinquent charges, interest, and collection costs for any dwelling unit that is found by the City to
be subject to the Fee. Neither the fact that a Rental Property Owner paid the Fee nor that a
Rental Property Owner claimed dwelling units are not subject to the Fee can be used as evidence
Service Fee Ordinance

in any determination of a petition with the Rent Adjustment Program or in a Court proceeding
regarding whether the subject dwelling unit is cqvered by the Rent Adjustment Ordinance or the
Just Cause for Eviction Ordinance.
E. Fee Based on Business Operation. The Fee is a fee associated with the operation of a
residential rental property business and not a fee based on ownership of real property.
F. Due Date for Fee. For the first fiscal year of 2001-2002, the Fee will be due on March 1,
2002 and will be deemed delinquent if not paid by May 1,2002. For all subsequent fiscal years,
the Fee will be due on January 1, and will be deemed delinquent if not paid by March 1.
G. Passthrough of One-Half of Fee. For rental properties that are covered by the Rent
Adjustment Program, a Rental Property Owner may pass through one-half of the Fee to a Tenant
in the year in which it is due, unless the Owner does not pay the Fee before the date it is deemed
late. A Rental Property Owner may not pass through any penalties, delinquent charges, or
interest to a Tenant. Rental properties that are subject to the Fee, but are not covered by the
Rent Adjustment Program are not subject to the limitation in this Subsection G.
H. Delinquent Owner. A Rental Property Owner who has not paid the Fee and any charges
related to a delinquency in payment of the Fee cannot:
1. Respond to a petition brought by a Tenant; or
2. Petition for a rent increase.

I. Delinquent Charges, Interest, and Collection Costs.

1. An Owner who does not pay the Fee on or before the date it is considered late must pay
a delinquency charge according to the following schedule:
a. 10% of the Fee due if paid in full within 30 days of the date it is considered late;
b. 25% of the Fee due if paid in full within 60 days of the date it is considered late;
c. 50% if paid after 60 days of the date it is considered late.
2. In addition to the delinquent charges, a Rental Property Owner who fails to remit the
Fee due by the date it is late shall pay simple interest at the rate of one percent per month or
fraction thereof on the amount of the Fee inclusive of delinquent charges from the date the Fee is
late.
3. A Rental Property Owner who has not paid the Fee by the end of the fiscal year in
which it is due may also be assessed the City's costs of collecting the Fee, including the City's
administrative costs of collection and any attorney's fees whether incurred by the City Attorneis
Office or by outside counsel.
4. The amount of any Fee, delinquent charges, interest, and collection costs imposed by
Chapter 8.22 shall be deemed a debt to the City and any Rental Property Owner carrying on a
residential rental business without paying the Fee and/or any delinquent charges, interest or
collection costs shall be liable in an action in the name of the City in any court of competent
jurisdiction, for the amount of the Fee and any tax and delinquent charges, interest or collection
costs imposed. An action to collect the Fee must be commenced within three years of the date
the Fee became due. An action to collect delinquent charges, interest or collection costs for
nonpayment of the Fee must be commenced within three years of the date such accrues.

Service Fee Ordinance

IN COUNCIL, OAKLAND, CALIFORNIA, (DATE), 20(YEAR)

PASSED BY THE FOLLOWING VOTE:
AYES-

BROOKS, CHANG, MAYNE, NADEL, QUAN, REID, WAN, AND PRESIDENT

DE LA FUENTE

NOESABSENTABSTENTION-

ATIEST:
CEDA FLOYD
City Clerk and Clerk of the Council
of the City of Oakland, California

/0

CQMMUNfrv .14. ECONOMIC

DEVELOPMENT CUTE
MAY 1 3 200'3
Service Fee Ordinance

FIlI:"I:

OFFICE OF

THtc;r '(

CLERK

APPRgOld-A'sffB FORM AND LEGALITY

INTRODUCED BY COUNCILMEMBER

ORDINANCE NO.

2003 MAR 27 PM 12-Cr'fAnORNEY

C.M.S.

AN ORDINANCE CODIFYING MEASURE EE, THE JUST CAUSE

FOR EVICTION ORDINANCE, ADOPTED BY THE ELECTORATE
AT THE MUNICIPAL ELECTION ON NOVEMBER 5, 2002

Whereas, on November 5, 2002, the voters of Oakland adopted Measure EE, the Just Cause for
Eviction Ordinance;
Whereas, pursuant to Section 215 of the Oakland City Charter, City Ordinances may be codified;
Whereas, to better integrate the Just Cause for Eviction Ordinance with the Rent Adjustment
Ordinance (O.M.C. Chapter 8.22) and to make the Just Cause for Eviction Ordinance more usable
and available to the public;
Whereas, for referencing purposes, the codification should include cross-referencing in brackets
to the codified numbers of sections.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN THAT CHAPTER 8.22 OF
THE OAKLAND MUNICIPAL CODE IS HEREBY AMEI\JDED TO ADD ARTICLE II AS FOLLOWS:

CHAPTER 8.22
RESIDENTIAL RENT ADJUSTMENTS AND EVICTIONS
ARTICLE II
JUST CAUSE FOR EVICTION ORDINANCE (MEASURE EE)
8.22.300

Just Cause for Eviction Introductory Clauses.

Whereas, the laws of the State of California and the Housing Element of the General Plan of the
City of Oakland prohibit arbitrary discrimination by landlords, and
Whereas, the right to occupancy of safe, decent, and sanitary housing is a human right, and
Whereas, the City of Oakland's prolonged affordable housing crisis disproportionately impacts low
income and working class households, senior citizens, people of color, and people with
disabilities, and thereby increases homelessness and crime, harms neighborhood stability and
cohesion, and damages business prospects for small businesses, and
/

~"TI i'EOOHOMiC
Ordinance for Codification of Measure EE

DEVROPMENT-cMTE
MAY 1-3 at03

Whereas recent state laws that eliminate limits on rent increases upon the vacation of rental units
provide added economic incentive to evict tenants, such that the number of no cause evictions
has increased markedly in recent years, and
Whereas, the absence of a local law prohibiting a landlord from evicting a tenant without good
cause is a significant barrier to implementation and enforcement of the Oakland Residential Rent
Arbitration Ordinance, and
Whereas, residential tenants, who constitute approximately 65% of the residents of Oakland,
suffer great and serious hardship when forced to move from their homes, and
Whereas, basic fairness requires that a landlord must not terminate the tenancy of a residential
tenant without good, just, non-arbitrary, non-discriminatory reasons, and
Whereas, the good cause eviction protections enacted in San Francisco, Berkeley, Hayward, and
other California cities, have aided community stability and reduced urban problems associated
with arbitrary disruption of stable households, and
Whereas, the general welfare of all citizens of Oakland would be enhanced if no cause evictions
were prohibited,
Therefore, the electorate of the City of Oakland hereby enacts this ordinance, prohibiting a
landlord from terminating a tenancy without good or just cause:
8.22.010
Title. [Section 1]
TI1is ordinance shall be known as the Just Cause for Eviction Ordinance.
8.22.020

Findings.

[Section 2]

1.

A public emergency exists in the City of Oakland due to the lack of adequate, safe,
sanitary, and affordable housing. This emergency disproportionately impacts tenants of residential
rental units, a majority of whom are people of color, working class families, and the homeless,
those of low income, and the elderly and disabled.
2.
.Just cause eviction protections would strengthen and effectuate existing rent control
legislation in Oakland as landlords are able to use no cause evictions to evade the Oakland
Residential Rent Arbitration Ordinance.
3.
Oakland presently has no just cause protections for tenants. As a result, any
residential tenant may be subjected to eviction at anytime and without reason.
4.
Without just cause protections, many tenants are afraid to demand their right to a
safe, inhabitable home.
.
5.
Furthermore, Oakland is experiencing extreme housing market pressures from
neighboring Santa Clara and San Francisco counties, resulting in a decrease in the vacancy rate
and an increase in residential rental prices.
6.
This situation has been exacerbated by the Costa-Hawkins law, which, by
eliminating controls on rents upon the voluntary vacation of a rental unit, has provided added
economic incentive to evict tenants. From January 1999 through December 2000, the effective
date of full implementation of the Costa-Hawkins law, Sentinel Fair Housing has reported a 300%
increase in the eviction of Oakland tenants. This trend has continued to date.
. 7.
W~thout t~e instit~tion of jUs~ cause protections, Oakland's housing emergency will
continue, and will contnbute to Increases In homelessness, crime, neighborhood instability, and
harm to small businesses.
8.
Many municipal jurisdictions in California, including Berkeley, Hayward. and San

Ordinance for Codification of Measure EE

Francisco in the Bay Area, have effectively utilized just cause proteCtion~ to pre,serve. affordable
housing. Such protections have helped abate the urban problems assocIated with neIghborhood
instability, homelessness, and illegal activity in vacant units, providing concrete benefits for both
landowners and tenants.
9.
Just cause eviction protections are consistent with the Housing Element of the
Master Plan of the City of Oakland, which states that residents have the right to decent housing in
pleasant neighborhoods at prices they can afford.

8.22.030
Purpose.
[Section 3]
The purpose of this Ordinance is to defend and nurture the stability of housing and
neighborhoods in the City of Oakland by protecting tenants against arbitrary, unreasonable,
discriminatory, or retaliatory evictions, thereby maintaining diversity in Oakland neighborhoods
and communities while recognizing the rights of rental property owners. This Ordinance is
intended to address housing problems in the City of Oakland so as to preserve the public health,
safety, and welfare, and to advance the housing policies of the City with regard to low and fixed
income persons, people of color, students, and those needing special protections, such as longterm elderly and disabled tenants.
8.22.040
Definitions. [Section 4]
A. LANDLORD. An owner of record, or lessor or sublessor of an owner of record, or any
other person or entity entitled either to receive rent for the use or occupancy of any rental unit or
to maintain an action for possession of a rental unit, or an agent, representative, or successor of
any of the foregoing.

B. OWNER OF RECORD. A natural person, who is an owner of record holding an interest

equal to or greater than thirty three percent (33%) in the property at the time of giving a notice
terminating tenancy and at all times thereafter, until and including the earlier of the tenant's
su rrender of possession of the premises or the execution of a writ of possession pursuant to the
judgment of a court of competent jurisdiction; but not including any lessor, sublessor, or agent of
the owner of record.
C. RENT. The consideration, including any deposit, bonus, benefit, or gratuity demanded or
received for, or in connection with, the use or occupancy of rental units and housing services.
Such consideration shall include, but not be limited to, moneys and fair value of goods or services
rendered to or for the benefit of the landlord under the rental agreement, or in exchange for a
rental unit or housing services of any kind.

D. RENT BOARD. City of Oakland Housing, Residential Rent, and Relocation Board
(HRRRB), aka Residential Rent Arbitration Board (RRAB), aka Rent Arbitration Board, aka
Oakland Rent Board, aka Rent Board, established under Ordinance No. 9980 and subsequent
amendments.
E. RENTAL AGREEMENT. An agreement, oral, written, or implied, between a landlord and a
tenant for the use and/or occupancy of a rental unit.
F. RENTAL UNIT (aka UNIT, aka PREMISES). Any unit in any real property, regardless of
zoning status, including the land appurtenant thereto, that is rented or available for rent for
residential use or occupancy (regardless of whether the unit is also used for other purposes),
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.

G. PROPERTY. A parcel of real property, located in the City of Oakland that is assessed
Ordinance for Codification of Measure EE

and taxed as an undivided whole.

H. TENANT. Any renter, tenant, subtenant, lessee, or sublessee of a rental unit, or any
group of renters, tenants, subtenants, lessees, sublessees of a rental unit, or any other p~rson
entitled to the use or occupancy of such rental unit, or any successor of any of the foregomg.

I. SKILLED NURSING FACILITY. A health facility or a distinct part of a hospital that

provides, at a minimum, skilled nursing care and supportive care to patients whose primary
medical need is the availability of skilled nursing care on an extended basis. Such facility must
provide 24-hour inpatient care, an activity program, and medical, nursing, dietary, pharmaceutical
services. Additionally, the facility must provide effective arrangements, confirmed in writing,
through which services required by the patients but not regularly provided within the facility can be
obtained promptly when needed.
J. HEALTH FACILITY. Any facility, place or building that is organized, maintained, and
operated for the diagnosis, care, and treatment of human illness, physical or mental, including
convalescence and rehabilitation, and including care during and after pregnancy, or for anyone or
more of these purposes.
K. MAXIMUM LAWFUL RENT. The maximum rent which may lawfully be charged for such
unit under the terms of the Oakland Residential Rent Arbitration Ordinance or successor
ordinances intended to limit or regulate rent charged for residential rental units within the City of
Oakland.

L. BUSINESS TAX DECLARATION. The annual declaration required to be filed in

connection with a landlord's obtaining or renewing a City of Oakland business license for rental
units. Any failure by a landlord to file such a declaration, whether pursuant to an exemption or
otherwise, shall not relieve a rental unit from being subject to the provisions of this ordinance.
M. CHILD/PARENT. A child/parent relationship is one in which a child is either a parent's
biological child or adopted child, provided that such relationship was established prior to the
child's eighteenth birthday and at least one year prior to the attempted eviction. At the time of
attempted eviction, a child of an owner of record must be over the age of 18 or be emancipated.
N. TENANTS' RIGHTS ORGANIZATION. Any unincorporated tenant's association,
incorporated tenants association, nonprofit housing and/or tenant's rights entity of any form.
8.22.050
Applicability.
[Section 5]
The provisions of this Ordinance shall apply to all rental units in whole or in part, including where a
notice to vacate/quit any such rental unit has been served as of the effective date of this
.
Ordinance but where any such rental unit has not yet been vacated or an unlawful detainer
jUdgment has not been issued as of the effective date of this Ordinance. However, Section 6
[8.22.060] and Section 7(A)-(E) [8.22.070 A through 8.22.070 E] of the Ordinance [O.M.C.
Chapter 8.22, Article II] shall not apply to the following types of rental units:

A. Rental units exempted from Part 4, Title 4, Chapter 2 of the California Civil Code (CCC) by
CCC 1940(b).
B. Rental units in any hospital, skilled nursing facility, or health facility.
C. Rental units in a nonprofit facility that has the primary purpose of providing short term
treatment, assistance, or therapy for alcohol, drug, or other substance abuse and the housing is

Ordinance for Codification of Measure EE

provided incident to the recovery program, and where the client has been informed in writing of
the temporary or transitional nature of the housing at its inception.
D. Rental units in a nonprofit facility which provides a structured living environment that has
the primary purpose of helping homeless persons ~btain t~e skills n~c~ssary for ind~pende:nt
living in permanent housing and where occupancy./s restricted to. a 11m/ted .and .speclfic period of
time 0 f not more than 24 months and where the client has been Informed In wntlng of the
temporary or transitional nature of the housing at its inception.

E. Rental units in a residential property where the owner of record occupies a unit in the
same property as his or her principal residence and regularly shares in the use of kitchen or bath
facilities with the tenants of such rental units. For purposes of this section, the term owner of
record shall not include any person who claims a homeowner's property tax exemption on any
other real property in the State of California.
F. A rental unit in a residential property that is divided into a maximum of three (3) units, one
of which is occupied by the owner of record as his or her principal residence. For purposes of this
section, the term owner of record shall not include any person who claims a homeowner's
property tax exemption on any other real property in the State of California.
G. A unit that is held in trust on behalf of a developmentally disabled individual who
permanently occupies the unit, or a unit that is permanently occupied by a developmentally
disabled parent, sibling, child, or grandparent of the owner of that unit.
H. Newly constructed rental units which are completed and offered for rent for the first time
after the effective date of the initial Oakland Residential Rent, Relocation, and Arbitration
Ordinance, provided that such new units were not created as a result of rehabilitation,
improvement or conversion as opposed to new construction.

8.22.060
Good Cause Required for Eviction.
[Section 6]
A. No landlord shall endeavor to recover possession, issue a notice terminating tenancy, or
recover possession of a rental unit in the City of Oakland unless the landlord is able to prove the
existence of one of the following grounds:
1.
The tenant has failed to pay rent to which the landlord is legally entitled pursuant to
the lease or rental agreement and under provisions of state or local law, and said failure has
continued after service on the tenant of a written notice correctly stating the amount of rent then
due and requiring its payment within a period, stated in the notice, of not less than three (3) days.
However, this Subsection shall not constitute grounds for eviction where tenant has withheld rent
pursuant to applicable law.
2.
The tenant has continued, after written notice to cease, to substantially violate a
material term of the tenancy other than the obligation to surrender possession on proper notice as
required by law, provided further that notwithstanding any lease provision to the contrary, a
landlord shall not endeavor to recover possession of a rental unit as a result of subletting of the
rental unit by the tenant if the landlord has unreasonably withheld the right to sublet following a
written request by the tenant, so long as the tenant continues to reside in the rental unit and the
sublet constitutes a one-for-one replacement of the departing tenant(s). If the landlord fails to
respond to the tenant in writing within fourteen (14) days of receipt of the tenant's written request,
the tenant's request shall be deemed approved by the landlord.
3.
The tenant, who had an oral or written agreement with the landlord which has
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 under such terms which are
materially the same as in the previous agreement; provided, that such terms do not conflict with
any of the provisions of this Chapter. [O.M.C. Chapter 8.22, Article II].
>

Ordinance for Codification of Measure EE

4.
The tenant has willfully caused substantial damage to the premises beyond normal
wear and tear and, after written notice, has refused to cease damaging the premises, or has
refused to either make satisfactory correction or to pay the reasonable costs of repairing such
damage over a reasonable period of time.
5.
The tenant has continued, following written notice to cease, to be so disorderly as to
destroy the peace and quiet of other tenants at the property
6.
The tenant has used the rental unit or the common areas of the premises for an
illegal purpose including the manufacture, sale, or use of illegal drugs.
7.
The tenant has, after written notice to cease, continued to deny landlord access to
the unit as required by state law.
.
8.
The owner of record seeks in good faith, without ulterior reasons and with honest
intent, to recover possession of the rental unit for his or her occupancy as a principal residence
where he or she has previously occupied the rental unit as his or her principal residence and has
the right to recover possession for his or her occupancy as a principal residence under a written
rental agreement with the current tenants.
9.
The owner of record seeks in good faith, without ulterior reasons and with honest
intent, to recover possession for his or her own use and occupancy as his or her principal
residence, or for the use and occupancy as a principal residence by the owner of record's spouse,
domestic partner, child, parent, or grandparent.
a.
Here the owner of record recovers possession under this Subsection (9)
[Paragraph 8.22.360 A9], and where continuous occupancy for the purpose of recovery is less
than thirty-six (36) months, such recovery of the residential unit shall be a presumed violation of
this Ordinance.
b.
The owner of record may not recover possession pursuant to this Subsection
more than once in any thirty-six (36) month period,
c.
The owner must move in to unit within three (3) months of the tenant's
vacation of the premises.
d.
When the owner seeking possession of a unit under Section 6(A)(9) [8.22.360
A.9] owns a similar vacant unit, the owner's decision not to occupy said similar unit shall create a
rebuttable presumption that they are seeking to recover possession in bad faith.
e.
A landlord may not recover possession of a unit from a tenant under
Subsection 6(A)(9) [8.22.360 A.9], if the landlord has or receives notice, any time before recovery
of possession, that any tenant in the rental unit:
i. Has been residing in the unit for 5 years or more; and
(a) Is 60 years of age or older; or
(b) Is a disabled tenant as defined in the California Fair Employment and
Housing Act (California Government Code 12926); or
ii. Has been residing in the unit for five (5) years or more, and is a
catastrophically ill tenant, defined as a person who is disabled as defined by Subsection (e)(i)(b)
[8.22.360 A9.e.i.b]]and who suffers from a life threatening illness as certified by his or her primary
.
care physician.
f.
The provisions of Subsection (e) [8.22.360 A9.e] above shall not apply where
the landlord's qualified relative who will move into the unit is 60 years of age or older, disabled or
catastrophically ill as defined by Subsection (e) [8.22.360 A.9.e], and where every rental unit
owned by the landlord is occupied by a tenant otherwise protected from eviction by Subsection (e)
[8.22.360 A9.e].
.
g.
A tenant who claims to be a member of one of the classes protected by
Subsection 6(A)(9)(e) [8.22.360 A.9.e] must submit a statement, with supporting evidence, to the
la!1dlord. A landlord may challenge a tenant'~ claim of protected status by requesting a hearing
With the Rent Board. In the Rent Board hearmg, the tenant shall have the burden of proof to show
protected s~atus. No civil or criminal liability shall be imposed upon a landlord for challenging a
tenant's claim of protected status. The Rent Board shall adopt rules and regulations to implement

Ordinance for Codification of Measure EE

the hearing procedure.

h.
Once a landlord has successfully recovered possession of a rental unit
pursuant to Subsection 6(A)(9) [8.22.360 A.9], no other current landlords may recover posses?ion
of any other rental unit in the building under Subsection 6(A)(9) [8.22.360 A.9]. Only one specIfic
unit per building may undergo a Subsection 6(A)(9) [8.22.360 A.9] eviction. Any future evictions
taking place in the same building under Subsection 6(A)(9) [8.22.360 A.9] must be of that same
unit, provided that a landlord may file a petition with the Rent Board or, at the landlord's option,
commence eviction proceedings, claiming that disability or other similar hardship prevents him or
her from occupying a unit which was previously the subject of a Subsection 6(A)(9) [8.22.360 A.9]
eviction. The Rent Board shall adopt rules and regulations to implement the application
procedure.
i
. A notice terminating tenancy under this Subsection must contain, in addition
to the provisions required under Subsection 6(B)(5) [8.22.360 B.5]:
jj
[sic] A listing of all property owned by the intended future occupant(s).
[sic}The address of the real property, if any, on which the intended
iii
future occupant(s) claims a homeowner's property tax exemption.
[sic] A statement informing tenant of rlis or her rights under
iv
Subsection 6(C) [8.22.360 C].
10. The owner of record, after having obtained all necessary permits from the City of
Oakland on or before the date upon which notice to vacate is given, seeks in good faith to
undertake substantial repairs that cannot be completed while the unit is occupied, and that are
necessary eitller to bring the property into compliance with applicable codes and laws affecting
health and safety of tenants of the building, or under an outstanding notice of code violations
affecting the health and safety of tenants of the building.
a.
Upon recovery of possession of the rental unit, owner of record shall proceed
without unreasonable delay to affect the needed repairs. The tenant shall not be required to
vacate pursuant to this Section, for a period in excess of three months; provided, however, that
such time period may be extended by the Rent Board upon application by the landlord. The Rent
Board shall adopt rules and regulations to implement the application procedure.
b.
Upon completion of the needed repairs, owner of record shall offer tenant the
first right to return to the premises at the same rent and pursuant to a rental agreement of
substantially the same terms, subject to the owner of record's right to obtain rent increase for
capital improvements consistent with the terms of the Oakland Residential Rent Arbitration
Ordinance or any successor ordinance.
c.
A notice terminating tenancy under this Subsection 6(A)(10) [8.22.360 A.10]
must include the following information:
i.
A statement informing tenants as to their right to payment under the
Oakland Relocation Ordinance.
ii.
A statement that "When the needed repairs are completed on your
unit, the landlord must offer you the opportunity to return to your unit with a rental agreement
containing the same terms as your original one and with the same rent (although landlord may be
able to obtain a rent increase under the Oakland Residential Rent Arbitration Ordinance [O.M.C.
Chapter 8.22, Article I)."
iii.
A statement informing tenant of his or her rights under Subsection 6(C)
[8.22.360 C].
iv.
An estimate of the time required to complete the repairs and the date
upon which it is expected that the unit will be ready for habitation.
11. The owner of record seeks in good faith, without ulterior reasons and with honest
intent, to remove the property from the rental market in accordance with the terms of the Ellis Act
(California Government Code Section 7060 et seq.).

B. The following additional provisions shall apply to a landlord who seeks to recover a rental
unit pursuant to Subsection 6(A) [8.22.360 A]:
Ordinance for Codification of Measure EE

1.
The burden of proof shall be on the landlord in any eviction action to which this order
is applicable to prove compliance with Section 6 [8.22.360].
2.
A landlord shall not endeavor to recover possession of a rental unit unless at least
one of the grounds enumerated in Subsection 6(A) [8.22.360 A] above is stated in the notice and
that ground is the landlord's dominant motive for recovering possession and the landlord acts in
good faith in seeking to recover possession.
3.
Where a landlord seeks to evict a tenant under a just cause ground specified in
Subsections 6(A)(7, 8, 9, 10, 11) [8.22.360 A7, 8, 9, 10, 11], she or he must do so according to
the process established in eee 1946 (or successor provisions providing for 30 day notice
period); where a landlord seeks to evict a tenant for the grounds specified in Subsections 6(A)(1,
2, 3,4, 5, 6) [8.22.360 A1, 2, 3,4, 5,6], she or he must do so according to the process
established in eep 1161 (or successor provisions providing for 3 day notice period).
4.
Any written notice as described in Subsection 6(A)(2, 3,4,5, 7) [8.22.360 A2, 3, 4,
7] shall be served by the landlord prior to a notice to terminate tenancy and shall include a
provision informing tenant that a failure to cure may result in the initiation of eviction proceedings.
5.
Subsection 6(B)(3) [8.22.360 B.3] shall not be construed to obviate the need for a
notice terminating tenancy to be stated in the alternative where so required under eep 1161.
6.
A notice terminating tenancy must additionally include the following:
a.
A statement setting forth the basis for eviction, as described in Subsections
6(A)(1) [8.22.360 A1] through 6(A)(11) [8.22.360 A11];
b.
A statement that advice regarding the notice terminating tenancy is
available from the Rent Board.
c.
Where an eviction is based on the ground specified in Subsection 6(A)(9)
[8.22.360 A9], the notice must additionally contain the provisions specified in Subsection
6(A)(9)(i) [8.22.360 A9.i].
d.
Where an eviction is based on the ground specified in Subsection 6(A)(10)
[8.22.360 A10], the notice must additionally contain the provisions specified in Subsection
6(A)(10)(c) [8.22.360 A1 0].
e.
Failure to include any of the required statements in the notice shall be a
defense to any unlawful detainer action.
7.
Within ten (10) days of service of a notice terminating tenancy upon a tenant, a copy
of the same notice and any accompanying materials must be filed with the Rent Board. Each
notice shall be indexed by property address and by the name of the landlord. Such notices shall
constitute public records of the City of Oakland, and shall be maintained by the Rent Board and
made available for inspection during normal business hours. Failure to flle the notice within 10
days of service shall be a defense to any unlawful detainer action.
C. The follOWing additional provisions shall apply to a landlord who seeks to recover a rental
unit pursuant to Subsections 6(A)(9) [8.22.360 A9] or (10) [8.22.360 A1 0]:
1.
Where the landlord owns any other residential rental units, and any such unit is
available or will become available between the time of service of written notice terminating
.
tenancy and the earlier of the surrender of possession of the premises or the execution of a writ of
possession pursuant to the judgment of a court of competent jurisdiction, the landlord shall, as a
co~dition of obtaining possession pursuant to Section 6 [8.22.360], notify tenant in writing of the
eXIstence and address of each such vacant unit and offer tenant the right to choose any available
rental unit and at the tenant's option: i) to enter into a temporary rental agreement; or ii) to enter
into a new rental agreement. Tile landlord shall offer that unit to the tenant at a rent based on the
rent that the tenant is currently paying, with upward or downward adjustments allowed based upon
the condition, size, and other amenities of the replacement unit. Disputes concerning the initial
rent for the replacement unit shall be determined by the Rent Board.
2.
The following shall be considered rebuttably presumptive violations of this Ordinance
by the landlord:
a.
Where the event which the landlord claims as grounds to recover possession

Ordinance for Codification of Measure EE

under Subsection 6(A)(9) [8.22.360 A.9] or (10) [8.22.360 A.1 0] is not initiated within three (3)
months after the tenant vacates the unit.
b.
Where a landlord times the service of the notice, or the filing of an action to
recover possession, so as to avoid offering a tenant a replacement unit.
.
c.
Where the individual (a landlord or qualified relative) for whom the Subsection
6(A)(9) [8.22.360 A.9] evictions occurred does not occupy a unit for a minimum of thirty-six (36)
consecutive months.
D. Substantive limitations on landlord's right to evict.
1.
In any action to recover possession of a rental unit pursuant to Section 6 [8.22.360],
a landlord must allege and prove the following:
a. the basis for eviction, as set forth in Subsection 6(A)(1) through 6(A)(11) [8.22.360
A.1 though 8.22.360 A.11] above, was set forth in the notice of termination of tenancy or notice to
quit;
b. that the landlord seeks to recover possession of the unit with good faith, honest
intent and with no ulterior motive;
2.
If landlord claims the unit is exempt from this Ordinance, landlord must allege and
prove that the unit is covered by one of the exceptions enumerated in Section 5 [8.22.350] of this
Ordinance, Such allegations must appear both in the notice of termination of tenancy or notice to
quit, and in the complaint to recover possession. Failure to make such allegations in the notice
shall be a defense to any unlawful detainer action.
3.
This Subsection (0) [8.22.3600] is intended as both a substantive and procedural
limitation on a landlord's right to evict. A landlord's failure to comply with the obligations described
in Subsections 7(0)(1) or (2) [sic] [8.22.360 01 or 8.22.360 0.2] shall be a defense to any action
for possession of a rental unit.
E. In the event that new state or federal legislation confers a right upon landlords to evict
tenants for a reason not stated herein, evictions proceeding under such legislation shall conform
to the specifications set out in this Ordinance [O.M.C. Chapter 8.22, Article II].
8.22.070
Remedies. [Section 7]
A. Remedies for violation of eviction controls.
1.
A tenant who prevails in an action brought by a landlord for possession of the
premises shall be entitled to bring an action against the landlord and shall be entitled to recover
actual and punitive damages, costs, and reasonable attorney's fees.
.
2.
Whenever a landlord or anyone assisting a landlord wrongfully endeavors to recover
possession or recovers possession of a rental unit in violation of Subsection 6(A) [8.22.360 A], the
tenant or Board may institute a civil proceeding for injunctive relief, money damages of not less
than three times actual damages (including damages for mental or emotional distress), and
whatever other relief the court deems appropriate. In the case of an award of damages for mental
or emotional distress, said award shall only be trebled if the trier of fact finds that the landlord .
acted in knowing violation of or in reckless disregard of this Ordinance. The prevailing tenant shall
be entitled to reasonable attorney's fees and costs pursuant to order of the court.
3.
The remedies available in this section shall be in addition to any other existing
remedies which may be available to the tenant.
B. Violation of the Ordinance.
Any violation of the provisions of this ordinance or application thereof shall entitle the aggrieved
tenant to actual and punitive damages according to proof and costs and attorney's fees.
C. Authorization of City Attorney to enforce the Ordinance.
Th~ ~ity ~ttorne:Y shall have the auth,ority to enforce provisions of this Ordinance; to bring actions

for InJunctrve relief on behalf of the City, or on behalf of tenants seeking compliance by landlords

Ordinance for Codification of Measure EE

with the Ordinance.

D. It shall be unlawful for a landlord to refuse to rent or lease or otherwise deny to or withhold
from any person any rental unit because the age of a prospective tenant would result in the tenant
acquiring rights under this Ordinance [O.M.C. Chapter 8.22, Article II]. Any person who refuses to
rent in violation of the Subsection shall, in addition to any other penalties provided by state or .
federal law, be guilty of a misdemeanor.
E. It shall be unlawful for a landlord or any other person who willfully assists the landlord to
endeavor to recover possession or to evict a tenant except as provided in Subsection 6(A)
[8.22.360 A].
8.22.080
Non-Waiverability. [Section 8J
The provisions of this ordinance may not be waived, and any term of any lease, contract, or other
agreement which purports to waive or limit a tenant's substantive or procedural rights under this
ordinance are contrary to public policy, unenforceable, and void.
8.22.090
Partial Invalidity. [Section 9]
If any provision of this ordinance or application thereof is held to be invalid, this invalidity shall not
affect other provisions or applications of this chapter which can be given effect without the invalid
provisions or applications, and to this end the provisions and applications of this ordinance are
severable.

IN COUNCIL, OAKLAND, CALIFORNIA, (DATE), 20(YEAR)

PASSED BY THE FOLLOWING VOTE:

AYES-

BROOKS, BRUNNER, CHANG, NADEL, aUAN, REID, WAN, AND

PRESIDENT DE LA FUENTE

NOESABSENTABSTENTION-

ATTEST:
CEDA FLOYD
City Clerk and Clerk of the Council
of the City of Oakland, California

/1
COMMUNn Y

,,:

E(;Oi~OMJC

DEVELOPMENT CMT.E
Ordinance for Codification of Measure EE

MAY] 3 2003