Beverly Hills’ Rent Stabilization Commission Continues Discussions on Modifications to Relocation Fe

At this Wednesday’s Beverly Hills Rent Stabilization Commission meeting, the Commission directed the City Attorney to draft a resolution recommending that the City Council consider that relocation fees be adjusted based on the formula of three times the median rent for the same size unit, 0,1,2,3, and 4 bedrooms, based on the City’s rent registry data each July 1^st commencing on July 1, 2022 plus an additional $1,000 for moving expenses plus an additional $2,000 for households with qualifying seniors, disabled individuals, or with a minor child.

The proposed resolution would change the formula for calculating relocation fees and expand upon the current bedroom size categories to include three- and four-bedroom sizes. It is important to note that the current formula provides qualified renters with an additional $2,000 in assistance. It is anticipated that the resolution will be brought back to the Commission for final consideration at the December 1^st Commission meeting. It is also anticipated that the Commission will continue discussing further modifications on the City’s relocation fees and whether to include a “Mom and Pop” relocation fee reduction at the December meeting.

The Commission first begun discussing changes to the City’s Rent Stabilization Ordinance (RSO) Relocation Fees in November 2020. During these deliberations, the Association has submitted several letters to the Commission expressing our concerns and recommendations. In the Association’s most recent letter to the Commission, among our requests were that any formula changes be delayed for at least one year to allow small business rental housing providers to recover from the severe financial effects of the pandemic, the need for means testing for relocation assistance eligibility and a relocation fee reduction for small property owners. To read the Association’s letter to the Commission, please click on the button below:

The City’s current RSO provisions set forth the required relocation fee structure based on unit size of bachelor or single, one bedroom, and two or more bedrooms with the base fee ranging from $6,988.87 to $13,986.75. Households with renters that are seniors, disabled or with a minor child receive an additional amount of $2,000. On July 1^st of each year, the fees are adjusted based on the Consumer Price Index.

Once the Commission makes their final recommendations and approves the resolution, it will be brought before the City Council for consideration. As the City Council has the sole authority to amend the City’s Rent Stabilization Ordinance, it is for the City Council to determine whether to accept the Commission’s recommendations and what amendments to the City’s Rent Stabilization Ordinance to adopt. We will continue to monitor this matter, advocate for our members interests and provide updates.