Rent Stabilization Department Regulations: Just Cause Exemptions and Protections

Rent Stabilization Department Charter Article XVIII Rent Stabilization Just Cause Fire Defense Protections Relocation Assistance Buyout Agreement April 8, 2025

Focus Rent Stabilization Department Just Cause Evictions Eaton Fire Protections City Council Ordinance Relocation Interwest Consulting Group Tenant Buyout Agreement 2

What is Included ? Rent Stabilization Department Just Cause Exemptions > Covered Rental Units- all Rent Units not specifically exempted > Fully Exempted Units Exempted from BOTH rent Stabilization and Just Cause (1804 (a)); and > Partially Exempted (Just Cause for Eviction applies) exempted from Stabilization of Rents (Section 1807, 1808, and 1809) and from petitions for Individual Rent Adjustments (Sections 1813 and 1814) but not exempted from Just Case Protections (Section 1806) 3

Fully Exempted Properties (Section 1804(a)) Rent Stabilization Department 1. Units in hotels, motels, inns, tourist homes, lodging and rooming houses and boarding houses unless tenant resides in the unit for more than 30 days as tenant s primary residence Rental units in hospitals, convent, monastery, extended medical care facility, asylum, non- profit home for the aged; dormitory owned and operated by an accredited institution of higher education and treatment or recovery facility 2. 4

Fully Exempted Properties (Section 1804 (a))(Cont d) Rent Stabilization Department 3. Rental units owned and operated or managed by a not-for-profit pursuant to a tax credit program; Units owned, operated or managed by a governmental unit; and A single-family either (Section 1805): a. Temporarily rented for no more than 12 months in any 36-month period (tenant must be informed); and b. a tenancy where the tenant shares a bathroom or kitchen with the homeowner, if the home is the primary residence of the owner. 4. 5. 5

Partially Exempted (Section 1804(b)) Rent Stabilization Department Just Cause Applies: Exempt from Sections 1807, 1808, 1809 (Stabilization of Rents) and Section 1813 and 1814 (Petitions for Individual Rent Adjustments): 1. To the extent required by state law (California Civil Code Section 1954.52), Costa Hawkins; and 2. Rental units governed by Pasadena City Code Section 17.42, Section 17.42.40 (Inclusionary Housing) and Chapter 17.43 (Density Bonus) to the extent permissible by law. 6

Just Cause Eviction Protections (Section 1806) Rent Stabilization Department No owner shall terminate a tenancy unless at least one of the following conditions exist: 1. Failure to pay rent 2. Breach of Lease 7. Subtenant in sole possession 8. Necessary and Substantial Repairs Requiring Temporary Vacancy 9. Owner Move-In 10. Withdrawal of units permanently form the rental market (Ellis Act) 11. Governmental Order 3. Nuisance 4. Illegal purpose 5. Refusal to execute new lease on similar terms 6. Failure to give access 7

Relocation Assistance (1806 (b)) & (1806 (a)(8)) Rent Stabilization Department Necessary and substantial repairs requiring temporary vacancy-after obtaining the necessary permits > Independently confirmed by the City; > The work will render the unit uninhabitable for not less than thirty (30) days; 8

Relocation Assistance (1806 (a)(8)) (Cont d) Rent Stabilization Department Landlord gives advance notice to the tenant of the tenants right to elect one or both of the following: > First right of refusal to any vacant rental unit owned by the landlord with a comparable or superior comparable unit. > First right to return to reoccupy the unit upon completion of the repairs at the same rent. > If tenant elects a comparable vacant unit at the same comparable rent, the tenant is not eligible for relocation and the tenancy is the same original date of first move in. 9

Relocation Assistance (1806 (a)(8)) (Cont d) Rent Stabilization Department If the Landlord files a petition for individual rent adjustment within six (6) months following the completion of work, the tenant shall be party to the proceeding, unless the Landlord gets a written waiver from the Tenant of his or her right to reoccupy the unit. 10

Owner Move-In (1806 (a)(9)) Rent Stabilization Department The landlords seeks in good faith to recover unit for possession as his/her or landlord s spouse, domestic partner, children, grandchildren, parents, or grandparents (qualified relative). > Only a natural person that has at least 50% recorded ownership interest > No eviction can take place if the owner already occupies a unit at the property or if a vacancy already exists at the property. 11

Owner Move-In (1809 (a)(9) Rent Stabilization Department > Any notice must contain the name, address and relationship to the landlord > Landlord (qualified relative) must intend in good faith to reside at the property within sixty (60) days after the tenant vacates and to occupy the unit as their primary residents for at least thirty (36) consecutive months. > If the landlord fails to occupy within 60 days or for 36 consecutive months the owner must: Offer the unit to the tenant who vacated the unit; and Pay the tenant all reasonable expenses incurred in moving. 12

Owner Move-in (1809(a)(9)(contd) Rent Stabilization Department Elderly or disabled Tenant > A landlord may not evict a tenant if the tenant has resided in the unit for five (5) years and is either: At least sixty (60) years or older Disabled; and or Is certified as being terminally ill by the tenant s treating physician. Landlord may evict a tenant who qualifies, if the landlord or qualified relative meets the criteria and no other units are available. 13

Owner move-in (1809(a)(9)(cont d) Rent Stabilization Department At all times, a landlord may request a reasonable accommodation if the landlord or qualified relative is disabled and another unit in Pasadena is necessary to accommodate the person s disability. 14

Withdrawal of Units Permanently from Rental Market (1806 (a)(10) Rent Stabilization Department An owner may withdraw all units at the property permanently from the rental market: > The landlord must file the required documents with the RSD in compliance with CA GOV Code Section 7060 (Ellis Act). > If the landlord will be demolishing the property, the landlord must have all permits from the City of Pasadena before serving the notice of termination. 15

Governmental Order (1806(a)(11)) Rent Stabilization Department Landlord seeks in good faith to recover to comply with a governmental order to vacate, order to comply, order to abate, or any other order that necessitates the vacating of the building pursuant to the Pasadena Municipal Code. 16

Governmental Order (1806(a)(11)) Rent Stabilization Department The Landlord must provide notice of one or both of the following: > If a vacant unit exists, the right of first refusal of a unit owned by the landlord of similar size and same rent; > The right to return to reoccupy the unit at the same rent charged, when the unit is deemed in compliance. If tenant accepts offer to move to a comparable unit, the tenant is not eligible for relocation fees, however the length of tenancy will be the same as the original move in date. 17

Relocation Assistance Rent Stabilization Department Landlords who seek to recover possession for: > Necessary & Substantial Repairs (Section (a)(8)) > Owner Move-in (Section (a)(9)) > Withdrawal of Units Permanently from the Rental Market (Section (a)(10)) > Governmental Orders (Section (a)(11)) > Inability to pay rent in excess of 5% plus the most recently announced AGA. 18

Relocation Fee Rent Stabilization Department 50% of payment within ten (10) days of the services of the written notice Remaining payment shall be paid > If 60-day notice is required either: to an escrow account no later than 28 days prior to the expiration of the notice, and provided upon certification of vacation; or directly to the tenant no later than 20 days. > If less than 60-day notice is required: directly to the tenant at the time the tenant vacates the rental unit. 19

Relocation Assistance Rent Stabilization Department Owners are required to provide the tenant with relocation assistance. The Rent Stabilization Department contract with Interwest Consulting Group 20

2024 Relocation Fees Rent Stabilization Department Household Type Moving Expenses Eligible Tenant Household $1,573 Special Circumstances Households $4,748 21

Eaton Fire Ordinance Rent Stabilization Department Passed by City Council for protection of tenants impacted by Eaton Fire Effective as 3/27/2025 Allows tenants to defer rent if impacted by the fire Who is Eligible? A Qualifying Tenant unable to pay rent at any point from January 15, 2025 to July 31, 2025 due to a Direct Financial Impact from the Eaton Fire. 22

Eaton Fire Ordinance Rent Stabilization Department Qualifying Tenant Resided in their rental unit since before January 7,2025; "Income Eligible": 2024 household income was equal to or less than 150% of local Area Median Income (AMI) Began "Income Replacement Efforts 23

Eaton Fire Ordinance Rent Stabilization Department Direct Financial Impact Qualifying Tenant's place of employment or business was destroyed or rendered uninhabitable due to the Eaton Fire and resulted in actual loss of wages; The economic impact of the Eaton Fire resulted in the layoff, reduction of work hours, or reduction in pay of the Qualifying Tenant by his or her employer; or A loss of the Qualifying Tenant's clients who were located in the Eaton Fire impacted areas resulting in a loss of income to the Qualifying Tenant. 24

Eaton Fire Ordinance Rent Stabilization Department Financial Impact Loss of at least (10%) of average monthly household income The 10% calculation includes income replaced through unemployment insurance, emergency benefits, or any other source, as an offset to the overall (net) loss. 25

Eaton Fire Ordinance Rent Stabilization Department What do Qualified Tenants have to do? Self-certify in writing, under penalty of perjury, that: They are unable to pay Rent due to Direct Financial Impacts related to the Eaton Fire, That they are Income Eligible, and That they have begun Income Replacement Efforts 26

Eaton Fire Ordinance Rent Stabilization Department What do Qualified Tenants have to do? Serve Notice to Landlord, or Landlord's agent in proper timeframe Within seven (7) days of each month their impacted Rent is due For February 2025 and March 2025 rent within fourteen (14) days of the ordinance going into effect - By April 10, 2025 27

Eaton Fire Ordinance Rent Stabilization Department Self Certification Notice The Rent Stabilization Department has a self- certification form for optional use. > Will be mailed to all tenants in Pasadena If tenants choose to create their own self- certification form, it must contain the information in Section 4(A) of the Ordinance. 28

Eaton Fire Ordinance Rent Stabilization Department How does this protect them? Affirmative defense to an eviction for nonpayment of rent that came due between January 15, 2025, and July 31, 2025. Provides the ability to repay for up to one year after the Protection Period The affirmative defense applies during the Protection Period (January 15, 2025, and July 31, 2025) and during the Repayment Period (up to 12 months after) if based on unpaid rent from the Protection Period 29

Tenant Buyout Agreement (1810) Rent Stabilization Department Landlord must provide the Tenant with a Notice of Tenants of Buy-out Negotiation Rights Every Buyout Agreement shall be in written in primary language in 12-point bold type the following language: > "You, (Tenant name), may cancel this Buyout Agreement any time up to 45 days after all parties have signed this Agreement without any obligation or penalty." 30

Tenant Buyout Agreement (1810) Rent Stabilization Department Every Buyout Agreement shall advise the Tenant that he/she/they have the right: (a) Not to enter into a Buyout Agreement; (b) To consult an attorney and/or the Rental Board before signing the Buyout Agreement; and (c) To cancel the Buyout Agreement at any time up to 45 days after all parties have signed it. 31

Tenant Buyout Agreement (1810) Rent Stabilization Department Every Buyout Agreement shall be signed and dated by the Landlord and Tenant. A copy of the fully executed Buyout Agreement shall be given to the Tenant. A fully executed Buyout agreement shall be filed with the RSD within 60 days of the executed date. A violation may be asserted as an affirmative defense in an unlawful detainer action. 32

Remedies Rent Stabilization Department Landlords demand or retention of excessive rent-Tenant has the right to petition (Section 1813) or file a civil suit. Civil Remedies If a landlord fails to move in within 2 months, or acted in bad faith, the tenant shall be entitled to regain possession of the rental unit at the same rent that was lawful when the tenant vacated. 33

Remedies Rent Stabilization Department An affirmative defense in an unlawful detainer proceeding Defense in an eviction proceeding for protections for victims of domestic violence or sexual assault or stalking or abuse. Rental Board or City Attorney Enforcement which may include the recovery of costs and fees. Fines and criminal penalties. 34

Thank you Rent Stabilization Department Reach us for Registration at: 626-744-7999 https://pasadenarentalregistry.3dienga ge.com/ Reach out to a Housing Counselor-: https://www.cityofpasadena.net/rent- stabilization/contact-housing- counselor/ Rent Stabilization Department Website: https://www.cityofpasadena.net/rent- stabilization/ 35