DATE: March 2, 2023
TO: Homelessness-Housing Task Force
FROM: Assistant City Manager
SUBJECT
Title
Informational Report on Rent Stabilization Administration Fee Increase
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RECOMMENDATION
Recommendation
That the Homelessness-Housing Task Force (HHTF) receives and reviews this staff report proposing an increase to the annual rent stabilization administration fee, which is necessary to meet the Rent Stabilization and Tenant Protection Ordinance (RRSO) requirement that the costs of administering the RRSO be reimbursed in full through the imposition of the annual fee.
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SUMMARY
Hayward City Council adopted the Residential Rent Stabilization and Tenant Protection Ordinance (RRSO) in July 2019. The RRSO includes Section 12-1.17, which establishes that the costs of administering the RRSO shall be reimbursed in full through the imposition of a rent stabilization fee, paid annually with an amount recommended to Council by the City Manager and Housing Division. When the RRSO was adopted, Council authorized fees of $40 per Covered Rental Unit and $19 per Rental Unit. Covered Rental Units have a higher per unit fee because they are covered under the rent increase threshold and rent dispute resolution provisions of the RRSO, which requires additional staff and consultant work to administer. Owners of Covered Rental Units may pass through half the cost of the fee to the tenants. Owners of Rental Units are not restricted by the City's RRSO on increases that may cover the cost of the fee, though they may be subject to a State rent increase threshold.
The annual fee has not been increased since it was established in July 2019. The fee was developed based on best estimates for the number of Covered Rental Units and Rental Units in the City and the anticipated costs of implementing the RRSO. Since then, City Council adopted the Tenant Relocation Assistance Ordinance (TRAO) without an increase in fees to cover administrative co...
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