James Wong, Senior Project Manager April 3, 2017 City Council through Economic Development & Technology Committee Proposed Amendments to Tenant Protections Ordinance, Chapter 9.75, PMC James Wong, Senior Project Manager April 3, 2017

Amendments to Tenant Protections Ordinance Recommendation: Find that the proposed action is exempt from CEQA under the “General Rule” exemption at Section 15061(b)(3) Direct City Attorney to prepare an amendment to the Tenant Protections Ordinance per the proposed modifications contained in the agenda report, and return within 60 days.

Amendments to Tenant Protections Ordinance Background: On 9/28/15 City Council directed staff to review the TPO, in particular the exemption at section 9.75.040(A). Under this section, a landlord intending to demolish or permanently remove a dwelling unit from the rental market would not be obligated to pay TPO allowances to a tenant in good standing if the tenancy was terminated in accordance with state law.

Amendments to Tenant Protections Ordinance Staff brought a recommendation to EDTech on 4/4/16 which removes the exemption and provides additional clarifying language. EDTech directed staff to return with said recommendation and requested staff to review other aspects of TPO for clarification and/or modification. Staff returned to EDTech on 3/21/17; the staff recommendation was approved with a request that staff follow-up on several additional items:

Amendments to Tenant Protections Ordinance Outreach to educational institutions: Staff contacted Fuller Seminary, Cal Tech, and William Carey Univ. Cal Tech and Fuller Seminary provided comments which staff will incorporate into the TPO mods. Diagram of TPO case processing: Provided in Attachment A of agenda report. Applicability of TPO to State-licensed facilities: The City Attorney has opined on this matter and the proposed TPO mods reflect the City’s position that state licensed care facilities are exempt from TPO.

Amendments to Tenant Protections Ordinance Wider distribution of TPO Information: Updated TPO info sheet and case processing diagram will be distributed to Pasadena-Foothills Assn of Realtors, Foothill Apts Assn, and owners of MF properties. Public comments at 3/21/17 EDTech meeting include: PFAR representative spoke in support of the recommendation Landlord family occupants should be subject to income limits Request for City opinion on TPO re: State-licensed care facilities Hsg Element provides for review of TPO-related items (e.g., adequacy of relo assistance level, just-cause eviction policy) Need to quickly move forward on the proposed TPO modifications

Amendments to Tenant Protections Ordinance Summary of Proposed Modifications to TPO: Remove the exemption at 9.75.040 (A) Further clarify that lawful termination of tenancy of a tenant in good standing does not exempt landlord from having to pay TPO allowance. Landlord is obligated to pay a modified TPO allowance if tenant is evicted for occupancy of unit by landlord or family member. “Family member” is defined for above case.

Amendments to Tenant Protections Ordinance Proposed Modifications to TPO: Set forth provisions under which educational institutions are obligated to pay TPO allowances to student, faculty, and staff residents of rental housing. Set forth that, consistent with state law, Residential Care Facilities for Elderly and other state licensed care facilities are exempt from TPO. Require tenant to provide specified information as requested by landlord or City for the purpose of determining tenant’s eligibility for TPO allowances. Set forth definition of “tenant in good standing”.

Amendments to Tenant Protections Ordinance