Title
Subject: Rent Program Service Fee
From: Community and Economic Development Agency
Recommendation: Approve the Final Passage (Second Reading) of an Ordinance recodifying the Rent Program Service Fee to a new Article in Oakland Municipal Code Chapter 8.22 and applying the fee to residential rental units covered by the Just Cause for Eviction Ordinance (Measure EE)
Body
APPROVED AS TO FORM AND LEGALITY
INTRODUCED BY COUNCILMEMBER
CiTYA7rORNEY
ORDINANCE NO. ---C.M.S.
AN ORDINANCE RECODIFYING THE RENT PROGRAM SERVICE
FEE TO A NEW ARTICLE IN OAKLAND MUNICIPAL CODE
CHAPTER 8.22 AND APPLYING THE FEE TO RESIDENTIAL
RENTAL UNITS COVERED BY THE JUST CAUSE FOR EVICTION
ORDINANCE (MEASURE EE)
WHEREAS, the Rent Program Service Fee originally established at O.M.C. 8.22.180 applies to
only those units that are covered under the Rent Adjustment Ordinance (O.M.C. Chapter 8.22,
Article 1);
WHEREAS, the Just Cause for Eviction Ordinance (Measure EE) gives the Rent Program
administration significant additional responsibilities in carrying out that Ordinance's mandates
including: Information to tenants, accepting filings, retrieving filings (including redacting
confidential information), holding hearings and possible appeals and further legal action on certain
rent disputes (setting comparable rents and rents after rehabilitation) and disputes over elderly,
disabled, or catastrophically ill status for owner-occupancy evictions, and adopting regulations;
WHEREAS, in addition to the mandatory responsibilities for the Rent Program, additional
administrative tasks will fall on the Rent Program and City Attorney's Office, including
dissemination of informative material, workshops and counseling, and litigation involved the Just
Cause for Eviction Ordinance;
WHEREAS, there are a significant number of additional residential rental units that are subject to
the Just Cause for Eviction Ordnance that are not also covered by the Rent Adjustment
Ordinance, which number is estimated to be in excess of 19,000, and includes principally single-
family units, condominiums, units on the Section 8 federal housing subsidy program, and
substantially rehabilitated units;
WHEREAS, the Just Cause for Eviction Ordinance does not provide its own independent funding
source and the existing fee applicable to residential rental units covered by the Rent Adjustment
Ordinance is insufficient to cover the costs of administration for the additional responsibilities for
the Rent Adjustment Program for the units subject to the Just Cause for Eviction Ordinance, but
exempt from the Rent Adjustment Ordinance;
Whereas, rental units exempt from the Rent Adjustment Program currently use Rent Adjustment
Program services in determining whether such units are, in fact, exempt from the Rent Adjustment
Program;
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ORA/Council
3,04072 la444-2-1 July 15, 2003
WHEREAS, applying the Rent Program Service Fee to the residential rental units that are subject
to the Just Cause for Eviction Ordinance, but are not covered by the Rent Adjustment Ordinance
would reasonably approximate the additional cost of servicing these units by the Rent Adjustment
Program.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN THAT CHAPTER 8.22 OF
THE OAKLAND MUNICIPAL CODE IS HEREBY AMENDED TO ADD ARTICLE IV AS FOLLOWS:
CHAPTER 8.22
RESIDENTIAL RENT ADJUSTMENTS AND EVICTIONS
ARTICLE IV
RENT PROGRAM SERVICE FEE
8.22.500 Rent Program Service Fee.
-A-. A. Establishment of the Fee. The Rent Program Service Fee (the "Fee") is hereby
established. The Fee and any penalties or costs for late or non payment of the Fee are dedicated
solely to the payment of services and costs of the Rent Adjustment Program and may be used
only for the administration, outreach, legal needs, enforcement of Chapter 8.22 (including the Rent
Adjustment Program and the Just Cause for Eviction Ordinance), collection of this Fee, and other
costs of the Rent Adjustment Program and cannot be used for any other purpose. The City
Manager shall develop procedures Ior collection of the Fee and ensuring that all funds generated
by the Fee will be used only for the Rent Adjustment Program. The Fee is to be charged against
any residential rental unit that is subject to either the Rent Adjustment Ordinance, the Just Cause
for Eviction Ordinance, or both.
-B-. B. Definitions.
1. "Rental Property Owner" includes an Owner as defined in the Rent Adjustment
Ordinance (O.M.C. 8.22.020) or a Landlord as defined in the Just Cause for Eviction Ordinance
(Measure EE, Section 4A).
2. "Tenant" has the same meaning as that term is defined in the Rent Adjustment
Ordinance (O.M.C. 8.22.020).
-G-. C. Amount of Fee. The amount of the Fee shall be set by the City Council in the
Master Fee Schedule. For the City's fiscal years of 2001 - 2002, and 2002 - 2003 the Fee is set
at $24.00 per Covered Unit Each fiscal year the City Manager shall report to the City Council on
the costs of the Rent Adjustment Program for the preceding fiscal year and the anticipated costs
of the Rent Adjustment Program for the coming year.
-D-. D. Residential Rental Units Subject to the Fee. The Fee is to be charged on a per unit
basis against all residential rental units that are either Covered Units or are covered by the Just
Cause for Eviction Ordinance, except such residential rental units that owned or operated by a
public entity, including, but not limited to, the City of Oakland, the Redevelopment Agency of the
City of Oakland, and the Oakland Housing AuthoritV. A Rental Property Owner who does not
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timely pay the Fee because the Rental Property Owner claims the dwelling unit is not subject to
the Fee must pay all Fees, delinquent charges, interest, and collection costs for any dwelling unit
that is found by the City to be subject to the Fee. Neither the fact that a Rental Property Owner
paid the Fee nor that a Rental Property Owner claimed dwelling units are not subject to the Fee
can be used as evidence in any determination of a petition with the Rent Adjustment Program or
in a Court proceeding regarding whether the subject dwelling unit is covered by the Rent
Adjustment Ordinance or the Just Cause for Eviction Ordinance.
-E-. E. Fee Based on Business Operation. The Fee is a fee associated with the operation
of a residential rental property business and not a fee based on ownership of real property.
-F-. F. Due Date for Fee. For the first fiscal year of 2001-2002, the Fee will be due on
March 1, 2002 and will be deemed delinquent if not paid by May 1, 2002. For all subsequent fiscal
years, the Fee will be due on January 1, and will be deemed delinquent if not paid by March 1.
-G-. G._Passthrough of One-Half of Fee. For rental properties that are covered by the Rent
Adjustment Program, a Rental Property Owner may pass through one-half of the Fee to a Tenant
in the year in which it is due, unless the Owner does not pay the Fee before the date it is deemed
late. A Rental Property Owner may not pass through any penalties, delinquent charges, or
interest to a Tenant. Rental properties that are subject to the Fee, but are not covered by the
Rent Adjustment Program are not subject to the limitation in this Subsection 8.22.500G.
44-. H._Delinquent Owner. A Rental Property Owner who has not paid the Fee and any
charges related to a delinquency in payment of the Fee cannot:
1. Respond to a petition brought by a Tenant; or
2. Petition for a rent increase.
JL 1. Delinquent Charges, Interest, and Collection Costs.
1. An Owner who does not pay the Fee on or before the date it is considered late must pay
a delinquency charge according to the following schedule:
a. IO% of the Fee due if paid in full within 30 days of the date it is considered late;
b. 25% of the Fee due if paid in full within 60 days of the date it is considered late;
c. 50% if paid after 60 days of the date it is considered late.
2. In addition to the delinquent charges, a Rental Property Owner who fails to remit the
Fee due by the date it is late shall pay simple interest at the rate of one percent per month or
fraction thereof on the amount of the Fee inclusive of delinquent charges from the date the Fee is
late.
3. A Rental Property Owner who has not paid the Fee by the end of the fiscal year in
which it is due may also be assessed the City's costs of collecting the Fee, including the City's
administrative costs of collection and any attorney's fees whether incurred by the City Attorney's
Office or by outside counsel.
4.- The amount of any Fee, delinquent charges, interest, and collection costs imposed by
Chapter 8.22 shall be deemed a debt to the City and any Rental Property Owner carrying on a
residential rental business without paying the Fee and/or any delinquent charges, interest or
collection costs shall be liable in an action in the name of the City in any court of competent
jurisdiction, for the amount of the Fee and any tax and delinquent charges, interest or collection
,04071 '3044@;-L4
costs imposed. An action to collect the Fee must be commenced within three years of the date
the Fee became due. An action to collect delinquent charges, interest or collection costs for
nonpayment of the Fee must be commenced within three years of the date such accrues.
J. SeverabilitV. This O.M.C Article 8.22.500 shall be liberally construed to achieve its
purposes and preserve its validity. if any provision or clause of this Chapter or application thereof
to any person or circumstances is held invalid, such invalidity shall not affect other provisions or
applications of this Chapter which can be given effect without the invalid provision or applicqkp@
and to this end the provisions of this Chapter are declared to be severable and are intended to
have independent validity.
K. Nonwaiverability. AnV provision, whether oral or written, in or pertaining to a rental
agreement whereby any provision of this O.M.C. Chapter 8.22, Article IV (8.22.500) is waived or
modified, is against public policy and void.
L. Effective Date.
1 . The ordinance codified in this O.M.C. Chapter 8.22, Article IV (8.22.500) takes effect
his Section Chapter take effect pursuant to Section 216 of the Oakland City Charter.
2. For rental units covered only by the Just Cause for Eviction Ordinance (O.M.C.
Chapter 8.22 Article 11 (8.22.300)) and not bV the Rent Ad'ustment Ordinance (O.M.C. Chapter
8.22 Article 1 (8.22.1 00)), the fee shall charged to such rental units in the fiscal Vear beginning Jul
1, 2003.
IN COUNCIL, OAKLAND, CALIFORNIA, (DATE), 20(YEAR)
PASSED BY THEE FOLL01WING VOTE:
AYES- BROOKS, CHANG, MAYNE, NADEL, QUAN, REID, WAN, AND PRESIDENT
DE LA FUENTE
NOES-
ABSENT-
ABSTENTION-
ATTEST:
111troduction Date: CEDA FLOYD
City Clerk and Clerk of the Council
JUN 1 7 2003 of the City of Oakland, California
Item 2.4
ORA/Council
July 15, 2003
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NOTICE AND DIGEST
AWO'11'1314@kO iECODIFYING THE RENT PROGRAM SERVICE FEE TO A
NEW ARTICLE IN OAKLAND MUNICIPAL CODE CHAPTER 8.22 AND
APPLYING THE FEE TO RESIDENTIAL RENTAL UNITS COVERED BY THE
JUST CAUSE FOR EVICTION ORDINANCE (MEASURE EE)
This ordinance recodifies the Rent Program Service Fee into a new article
in the Municipal Code. It also applies the fee to residential rental units covered
by the Just Cause for Eviction Ordinance that are not covered by the Rent
Adjustment Program.
Item
ORA/Council
JuIY'15,2003
305379.1