South Pasadena Considers Eliminating Substantial Remodels for Permanent Tenancy Terminations

On Wednesday, November 1^st, the South Pasadena City Council will consider a new draft ordinance that will eliminate substantial remodels when tenancies are being permanently terminated (Agenda Item 9). Instead, South Pasadena will only allow temporary relocation of existing renters while major remodeling and repairs are made and the proposed ordinance will impose unfair and inequitable relocation fees of two times the daily per diem of existing rent or two times the daily Federal Government Services Administration per diem, whichever is greater PLUS meals and “incidentals”. 

We urge all AAGLA members with rental properties in South Pasadena or the surrounding areas to make their voices heard by attend the meeting at 7:00 p.m. IN-PERSON or via ZOOM and to immediately send emails and call the City Council to urge them to vote down this new ordinance or to at least provide a fair and equitable relocation fee by removing the two times multiplier for per diem relocation fees for all small, independent mom-and-pop rental providers with 20 or fewer units.

The South Pasadena City Council has already recognized corporate owners by providing them with an equitable remedy by modifying the draft ordinance to allow for voluntary buyout (e.g., cash-for-keys) agreements. However, this solution only benefits owners with substantial financial resources that can afford to pay for such buyouts. The small mom-and-pop owners struggling to maintain their buildings and long-time ownership do not have the same substantial financial resources as large corporations. 

Independent, “mom-and-pop” rental housing providers must be properly recognized by this City Council as small businesses owners that cannot afford to pay “relocation assistance” to renters more than they are receiving in rent, especially to middle and high-income renters. As such, at a minimum, the ordinance needs to be further modified to reduce the relocation fees to existing daily rent only without any multiplier or any additional add-ons for all owners with 20 or fewer units or exclude them completely from the ordinance like Claremont’s new ordinance. The City Council must recognize the fact that the smaller owners tend to own much older properties that are badly in need of repair and upgrade, and that require much more maintenance than new properties, and accordingly, tacking on excessive, additional expenses will further increase the existing financial burden of mom-and-pop owners.

In addition, the City should offer its own “relocation assistance” for renters similar to the program already established in Claremont for low, very low and extremely low-income renters and for small owners needing assistance in maintaining their buildings.

Mom-and-pop owners are the backbone of the rental housing industry, many of whom are retirees and new immigrants. These are the people providing the naturally occurring affordable housing for working families that is already severely scarce in South Pasadena. The City Council should not force these owners out of business and their properties off the market by failing to properly recognize the substantial differences between them as small business owners and large, national corporations. To turn a blind eye to this obvious reality is to drive more affordable rental housing out of South Pasadena.

AGENDA

DRAFT ORDINANCE

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