Rental Security in Healdsburg

 Rental Security in Healdsburg

Renters in Healdsburg are exposed to a tremendous amount of anxiety. All around them they see properties being improved by their owners and resold in an effort to take part in Healdsburg’s lucrative real estate market. Many times, renters have lost their homes and were forced to look for new rentals, often in another town, in an increasingly unaffordable market.

The discussion about affordable housing really exploded in Healdsburg around 2015, though the problem’s roots go back much further. During that time, the City Council heard from hundreds of residents being forced to leave their hometown to find an affordable place to live.

Developing new affordable rental housing has been a priority for the city ever since and inventory is increasing. However, we are not seeing a corresponding leveling in rents in existing rental homes and apartments. This may be because the influx of new, wealthy residents seem willing to pay anything to live in Healdsburg, and this willingness creates a market where increased inventory does not have the desired effect of increasing competition and leveling rent increases.

Rental insecurity continues on. Recently we have been hearing about it again during the City’s community ‘Encuentro’ meetings that are being held as we and our partners (Acosta Latino Learning) develop a Diversity, Equity, and Inclusion plan. Though rental insecurity affects all types of people, it’s no stretch to see this as an equity issue with many in our Latino community voicing how difficult it is to get by in Healdsburg where the rents are so high. Please review this Press Democrat article from 2015. The racial aspect of this issue is undeniable.

Furthermore, we should consider the climate impact of Healdsburg workers forced to leave town due to skyrocketing rents. To minimize greenhouse gas emissions, we need to do whatever we can to keep commute distances down for both workers and shoppers. Safeguarding existing workforce housing is far less impactful to the environment than building new units.

The Healdsburg Rental Advisory document (below) is a non-binding statement of fair rental practices that emerged as part of the housing discussion that began in Healdsburg around 2015-16. It appears on the city website and was included as a part of the city’s Housing Action Plan. However, it is been largely forgotten and never updated. Those owners and property managers who agreed to the Advisory have never been asked to renew their agreement, and new owners in town have not been asked to agree.

In order to honestly address those experiencing rental insecurity, I think we should revisit this document and transform it into an ordinance that addresses rental security in a forthright way. Why not abandon the Advisory and develop an ordinance from scratch? Our Rental Agreement document was accepted by a large number of owners (let’s use this term instead of the outdated ‘landlord’) and property managers, which is a fantastic starting place. It’s important that we heed warning from other nearby communities (Petaluma, Fairfax) that are facing a disconcerting amount of blowback to their recent rental ordinances. Without going into the details just yet, these ordinances are seen by some as ‘draconian’ and are discouraging to those owners who are needed by the community to continue supplying needed affordable housing options.

In Healdsburg, there are many owners who are sensitive to the struggles of working renters, who keep their rents affordable (often well below market values), who faithfully maintain their properties, and who respect the fact that their tenants need stability -a home they know they can remain in for the foreseeable future. I believe that these people are the very glue holding our community together. If every owner of rental properties followed the lure of prevailing rental values on the market, the effect would be absolutely catastrophic. For this reason, we need an ordinance that respects community-minded owners and applies no undue pressure.

It’s important that during the process of developing an ordinance, we establish an opportunity for tenants and owners to meet and get to know each other. With a greater understanding of each other’s motivations and struggles, we can better establish relationships with fairness and transparency at their foundation. And we need to establish a new culture of collaboration and negotiation. The most egregious evictions in recent memory often happen when owners isolate themselves in anonymity and operate beyond (either literally or figuratively) the sounding board of the community.

Our Rental Agreement document provides a relatively uncontroversial starting point as it was initially agreed to by a large number of owners in town. The Advisory was specifically made to address rental housing, but since the time it was created, the city has experienced rental insecurity in the commercial sector also. I see no reason why the Advisory should not be expanded to help protect local businesses, many who are experiencing erratic rent increases and surprise evictions.

Following is the complete Rental Advisory document with my comments included in red.

 

City of Healdsburg Rental Advisory

https://www.cityofhealdsburg.org/680/Rent-Advisory 

The City Council of the City of Healdsburg values all members of our community. Housing that is decent, safe and affordable to all is critical to the overall quality of life in our community. The City is committed to providing Healdsburg residents who reside in rental units a level of stability in their rent and occupancy. The following Rental Stabilization Advisory addresses concerns that have been raised due to recent substantial rent increases and tenant displacements related to repair/maintenance issues.

Please note, City housing policy documents including the City’s General Plan and recently adopted Housing Element, as well as the recent Housing Our Community workshops provide additional background on housing topics. While it is expected that property owners comply with all applicable laws, the purpose of this Advisory is to affirm Council’s support of the City’s housing goals and communicate expectations to property o

1. Property owners have an obligation to provide a measure of reliability to tenants regarding rent increases both in terms of rate of increase and frequency. Rent increases for current tenants should be reasonable and fair. A guideline for a reasonable and fair increase amount should not exceed 10% annually.

a. Rents should not be raised more than once per calendar year to current tenants. 

b. Owner should be able to recover the cost associated with an increased cost of operations and maintenance.

c. Owners should, whenever possible, provide tenants with a minimum of 90 calendar days’ written notice prior to the effective date of any rent increase.

State law (AB-1482, the Tenant Protection Act of 2019) now limits increases to 5% annually. “the maximum that landlords can raise rents in California is 5% per year, plus the percentage change in the cost of living according to the consumer price index, or 10% of the lowest rent increase at any time during the 12 months (whichever is less).”

Furthermore, common recommendations (Zillow, Rentals.com) suggest an increase of just 3-5%. I propose we match the State’s 5% cap, but also limit the increase to no more than 10% over any 3-year period.

The State makes a number of exemptions to this limit. These include: Mobile homes, any duplex where the owner lives in the other unit, Single-family homes and condominiums as long as they are NOT owned by a corporation, a REIT (real estate investment trust), or an LLC where one member is a corporation, Commercial properties (retail stores, restaurants, etc.), Buildings built within the last 15 years (including accessory dwelling units, Rental properties provided by non-profit organizations. If possible, I think a Rental Security Ordinance in Healdsburg should eschew these limits and apply to ALL rented residences and commercial properties. 

(Source: https://www.sageregroup.com/2022-update-how-much-can-a-landlord-legally-raise-the-rent-in-california/)

2. When significant work on a rental unit is needed that requires the tenant to be removed, the tenant is to be given the first right of return to his or her unit once repairs are completed.

a. Owners should be able to recover the documented cost of capital improvements averaged on a per unit basis amortized over a period of no less than 48 months;

b. First right of return would not apply to those tenants that are delinquent in rental payments; and/or that have violated the rental/lease provisions;

c. If renovations / improvements require terminating tenancies, owners should provide a minimum of 90 days’ written notice to the tenant.

d. Owners must consider and respond appropriately to requests for reasonable accommodations from tenants with disabilities.

I agree but think 90 days is not nearly long enough to re-arrange one’s whole life, especially in a crowded and expensive housing market. Increase to 6 months. In cases of eviction to renovate (of for the owner, or a family member, to take residence at the property) then tenant should receive a relocation fee equal to 3 months rent.

3. Owners / property managers imposing reasonable rent increases should be willing to listen openly to tenants’ concerns and consider special arrangements for hardship cases when appropriate.

A city official (the Housing Director in the case of rental housing) or a proxy should be available to participate in these discussions if requested by the tenant. The negotiations should happen in person or by Zoom. If by Zoom, tenants will be allowed use of necessary technology (access to a computer and internet etc.). Tenants should be made known of these two stipulations at least two weeks in advance of the negotiations. Include this in the new rental security ordinance.

4. Safe and healthy living conditions are a shared responsibility. Property owners are expected to respect the rights of their tenants and provide a timely response to maintenance/repair requests and in accordance with applicable law.

Furthermore, tenants should be able to complain to the city if repairs are not made in good time -and without worry of eviction. The Housing director should be available to intervene in these cases to ensure the rights of both parties are upheld.

a. Rental property owners are responsible for maintaining their property in good repair and are encouraged to work with their tenants to visually inspect properties on a regular basis to identify any health and/or safety issues and complete any required corrections promptly.

b. It is important to contact the City’s Planning and Building Department prior to initiating necessary work to determine whether or not a building permit is required. The Building Department is available to provide information and assistance regarding building code requirements.

c. In accordance with State law, owners are prohibited from taking action (such as increasing rent, or serving notices of termination) that could be considered retaliatory against tenants who have recently made complaints to the City regarding unresolved health and safety issues in their units.

This needs to be clearly presented to all tenants bilingually, and on an annual basis. Inspections can only occur after a week’s notice and in accordance to the availability and schedule of the tenant.  

-Chris Herrod, revised 2/23