Concord City Council Moves Forward With Rent Stabilization Ordinance

CONCORD, CA — The Concord City Council voted Tuesday night amid cheers in the Council Chambers to introduce an ordinance that would establish rent stabilization and just cause for eviction policies for Concord rental properties.

In a 4-1 vote, with Councilmember Laura Hoffmeister dissenting, the Council approved language for the new law, which would take effect 30 days after final adoption.

In January 2023, the Council expressed its desire to protect the tenant community from displacement and added a policy into the City’s Housing Element to move forward with considering rent stabilization and just cause policies.

Seven public meetings were held on the topic and Council members heard from hundreds of property owners and tenants.

There are 18,000 rental units in the city of Concord, which will join other Contra Costa County cities like Richmond and Antioch in controlling how much landlords can raise rents annually.

"We are here because we are now looking to try to address a crisis," said Mayor Edi Birsan, just before the vote took place after 11:30 p.m. "And, as was said before, crisis shouldn't last forever ... one of the reasons we are here is we are supposed to react to the crisis and what comes up. That's the role of government."

Vice Mayor Caryln Obringer suggested the council consider putting just cause evictions in single-family homes on the ballot, something the majority of the council dismissed.

Hoffmeister said she couldn't support the ordinance because it could punish landlords doing the right thing for a few who weren't. She also said she didn't see rent control solving high housing prices in other cities.

She also said rent raises of 3 percent or 60 percent of CPI was too low.

"Our problem is housing supply," Hoffmeister said. "It costs a lot to own and operate and build an apartment complex. And that's the problem. And our affordable housing people will tell us that they're struggling trying to get money from the state, to make ends meet to do more affordable housing in our community."

Major provisions of the ordinance introduced at Tuesday's meeting are outlined below, with changes made at the meeting identified as updates.

RENT STABILIZATION

Rent stabilization would NOT apply to rented single-family homes, rented condominium units, or rented accessory dwelling units.

Rent stabilization WILL apply to multi-family rental complexes of two or more units built before Feb. 1, 1995.

Here is a brief description of major features to be included in the proposed new Ordinance:

• Limit annual rent increases to 3% or 60% of the Consumer Price Index (CPI), whichever is lower.
• Updated 2/13/24: The City Council shall review the Annual Allowable Rent Increase amount each year.
• Updated 2/13/24: The City will honor agreements Affordable Housing providers have with the City or other government agencies that cap their rent increases at 5% or less in their regulatory agreements or deed restrictions. All other rent stabilization and just cause for eviction provisions apply.
• Controls the allowable rent increases upon the first date of occupancy but does not control the dollar amount for starting-of-occupancy rent (i.e., it preserves vacancy decontrol).
• Updated 2/13/24: Includes a “rent rollback” provision that sets rents to the dollar amounts that were charged for rent as of April 4, 2023, plus allows for up to the Ordinance-allowed rent increase of 2.52% for the 2023 calendar year (2.52% is 60% of the CPI for April 2023).
• The Ordinance would establish a process utilizing a Hearing Officer whereby tenants could appeal their rent increases, if they believed them to be inconsistent with the City Ordinance, and whereby property owners could request higher rent increases, above what the Ordinance would otherwise allow, to obtain a fair return on their investment property.
• Updated 2/13/24: If they choose to do so, tenants and property owners would be able to file a lawsuit directly with courts instead of having to first go through the City’s petition process.

JUST CAUSE FOR EVICTION

Just cause for eviction WOULD apply to most rented units in Concord, including rented single-family homes and rented condominium units.

Just cause would NOT apply to rented accessory dwelling units.

Here is a brief description of major features to be included in the proposed new Ordinance:

• Just cause regulations do not apply when a tenant is evicted for “at-fault” reasons, such as non-payment of rent, breach of a material term of the lease, or occupying the space in such a manner as to create a nuisance or criminal activity.
• Just cause protections for tenants would be triggered when a tenant is evicted for “no-fault on the tenant’s part” reasons, such as when an owner wants to move into the unit, wants to remove the entire complex from the rental market (Ellis Act eviction), or needs the unit vacant to perform substantial rehabilitations.
• A “right of return” would be available in some instances, such as when substantial rehabilitation is completed, or if an owner returns the unit to the rental market within a specified time after an Ellis Act eviction.
• Updated 2/13/24: The Ordinance allows for owners to vacate sooner than the 24 months required following an owner move-in if they are experiencing a “Significant Hardship” as defined in the Ordinance.
• In the case of no-fault evictions at multifamily rental complexes, just cause provisions in the revised draft Ordinance would require the property owner to pay three times the Federal Housing and Urban Development (HUD) Fair Market Rent (FMR) and an extra $3,000 to cover moving expenses. If applied in 2024, the total payment required would range from $8,475 for a studio unit to $14,862 for a four-bedroom unit. Prices are set by HUD for each calendar year. Certain tenants, such as those over 62 years of age, or who are terminally ill or disabled, would be eligible for an additional month of FMR.
• Updated 2/13/24: For no-fault evictions, landlords of rented Single-Family Homes and Condominiums would pay the relocation assistance in the amount of two months of the tenant’s current rent plus a moving stipend of $2,000.

Everyone who owns property subject to either rent stabilization or just cause protections would be required to register their units with the city of Concord annually and pay a yet-to-be-determined annual registration and administration fee.

NEXT STEPS

Following the introduction Tuesday of the ordinance, staff expects to return to Council on Tuesday, March 5 for ordinance adoption. The ordinance will take effect 30 days later on April 4.

All landlords are required to register their rental units annually with the city on or before July 1 and pay a yet-to-be-determined fee, which will be used to finance the cost of the registry and implementation and enforcement of this policy.

PREVIOUS COVERAGE:

• City Of Concord Surveys Tenants, Landlords
• Concord To Revisit Rent Stabilization Plan
• Concord City Council To Consider Rent Stabilization, Just Cause For Eviction
• Concord Renters Form First-Of-Its-Kind Tenants Union
• Concord Feels Weight Of Bay Area Housing Crisis

Bay City News Service contributed to this report.