News Alert: Claremont Adopts Increased Relocation Fees for ALL No-Fault Evictions
At the May 23rd Claremont City Council Meeting, the Council voted to adopt a Just Cause Ordinance limiting evictions and increasing relocation fees as well as establishing heightened requirements for substantial remodels. The Ordinance will go into effect on June 22nd. We encourage members who own properties in the City of South Pasadena to view the full details of the Just Cause Ordinance (see below).
Under the new ordinance a rental housing provider in Claremont who wants to use a “No-Fault” cause to terminate a tenancy will have to pay to the renter three months’ rent as a relocation fee. No-Fault causes including (i) owner move-in, (ii) removal from rental market (Ellis Act), (iii) required by government agency, and (iv) demolition and substantial remodels.
In addition, in order for a property or unit to qualify for substantial remodels, the owner must meet all of the following requirements:
- Obtain building permits from the City of Claremont;
- Provide the renter with copies of the building permit(s);
- Provide the renter with a written detailed account of the scope of work, why the work cannot be reasonably accomplished in a safe manner with the renter in place, and why the work cannot be completed within thirty (30) days;
- The owner has demonstrated to the satisfaction of the City’s Building Official or his/her/their designee that the valuation of the work is at least six (6) times the cost of enter’s monthly rent. For purposes of this requirement, the monthly rent shall be based upon the average rent for the preceding twelve (12) month period;
- The owner has demonstrated to the satisfaction of the City’s Building Official or his/her/their designee that the work is necessary to bring the rental unit into compliance with applicable codes and laws affecting the health and safety of renters of the building.
For demolition, the owner must obtain the necessary permits and provide copies of such permits to the renter(s).
As a result of extensive advocacy by the Apartment Association of Greater Los Angeles (AAGLA) an exemption has been included for all rental housing providers with nine (9) or fewer rental units. This is a significant win as it is more than double the carveout provided by the City of Los Angeles and recognizes that independent, “mom-and-pop” owners existing beyond those with 4 or fewer units.
The vote to adopt the ordinance was 3-to-1 with Mayor Reece recusing himself from voting as he is a rental housing provider and Council Member Calaycay voting no. Again, AAGLA thanks Council Member Calaycay for being the champion for rental housing providers on the Council in seeking fair and equitable treatment of mom-and-pop owners’ concerns. His No vote signified a protest vote for the ordinance being brought forward without justifying data or consideration of the harmful impact on Claremont’s rental housing providers.
AAGLA opposed the ordinance by contacting City Council members in advance of the meeting, providing detailed formal written comments and providing public comment at the City Council meeting. AAGLA urged reduction of the newly increased relocation fees particularly for owner move-ins when done for financial reasons and omission of the requirement for substantial remodels that the cost be equal to 6 times the renter’s monthly rent as this unrelated to actual remodeling costs.
As previously announced, AAGLA successfully defeated the rent stabilization ordinance in its entirety. In addition, AAGLA successfully increased the amount for the new Temporary Housing Stabilization and Relocation Program to $1 Million in funding from the original proposal of $300,000 (more than a 300% increase).
AAGLA will continue to advocate for our members’ interests in Cudahy and throughout our territory.
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If you want to STOP harmful regulations like these from proliferating throughout Southern California in the future, give us the resources we need to support candidates that will bring a fair and balanced approach to policymaking. Make a contribution to the Apartment Association of Greater Los Angeles’ Political Action Committee TODAY! Make your contribution at: https://aagla.org/candidatespac/.
This article is for informational purposes only. If you have any questions regarding your property or specific tenancies and the requirements of any local law changes described herein, please consult with an attorney.