DATE: July 5, 2016
TO: Mayor and City Council
FROM: City Attorney
SUBJECT
Title
Introduction of Ordinance Amending Section 2(l)(2) of the Residential Rent Stabilization Ordinance
End
RECOMMENDATION
Recommendation
That the Council introduces an ordinance amending Section 2(l)(2) of the City of Hayward Residential Rent Stabilization Ordinance clarifying that the exemption is applicable only to units currently financed or insured by a federal, state, or local agency.
Body
SUMMARY
Section 2(l)(2) of the Residential Rent Stabilization Ordinance provides that the following units are not subject to rent control:
"Dwelling units in multi-family housing projects financed or insured by a federal, state, or local agency or receiving rent subsidy assistance therefrom if the units are subject to rent controls as a result of such financing, insurance, or subsidy;"
As written, the language can be interpreted to provide a permanent exemption to multi-family housing projects formerly financed or insured by a federal, state, or local agency. Such an interpretation would result in the loss of affordable housing units in Hayward.
Staff seeks to add clarifying language to make clear that this exemption is applicable only to multi-family housing projects that are currently financed by a federal, state or local agency. Consistent with current City interpretation, this minor amendment will clarify that units no longer financed or insured by a government agency are subject to Hayward rent control.
BACKGROUND
In 1983, the City of Hayward adopted the Residential Rent Stabilization Ordinance (Ordinance). As is the case today, the Hayward rental market experienced a shortage of affordable rental housing at the time of adoption of the Ordinance. The purpose of the Ordinance was to provide relief to residential tenants by stabilizing rent increases, encouraging rehabilitation of rental units and assuring efficient landlords a...
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