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HomeMy WebLinkAbout1986ORDINANCE NO. 1986 AN URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING CHAPTER 5.85 OF THE PALM SPRINGS MUNICIPAL CODE (PSMC) REQUIRING CERTAIN TENANT RELOCATION AND PROTECTION BE PROVIDED AS A CONDITION OF APPROVAL OF ENTITLEMENTS TO CONVERT RENTAL MULTI -FAMILY HOUSING TO OTHER USES. [Four - fifths (415) vote required] City Attorney Summary The City receives, reviews, and approves various applications involving the conversion of rental multi -family housing to condominiums, hotels, or other uses. Such conversions result in the displacement of the occupants and residents of the rental multi- family housing. The Council finds that such displacement creates hardship and costly relocation expenses for those occupants and residents and contributes to the existing homeless issue in the City. This Urgency Ordinance requires that each approved conversion be conditioned upon the applicant limiting rent increases and providing certain minimum tenant notice and relocation assistance to ensure an orderly, fair, and reasonable opportunity for displaced occupants and residents to find and relocate to suitable replacement housing. This Urgency Ordinance requires a four -fifths (415) vote of the City Council to pass and, if passed, will take effect immediately. THE CITY COUNCIL FINDS AND DETERMINES AS FOLLOWS: A. The City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and pursuant to the authority so granted, the City has the power to make and enforce within its limits all ordinances and regulations in respect to municipal affairs not in conflict with general laws and its own charter. Such police powers include without limitation the ability to adopt regulations pertaining generally to the protection and promotion of the public health, safety, and welfare, and pertain specifically to tenant relocation assistance and other protections. B. With that purpose and intent, the City Council adopted Urgency Ordinance 1923 on April 5, 2017, Urgency Ordinance 1927 on May 3, 2017, and Urgency Ordinance 1954 on April 4, 2018, relative to relocation and protection requirements for tenants of rental multifamily housing units. C. By its own terms, Urgency Ordinance 1954 is scheduled to sunset on April 5, 2019 and, by adopting this Ordinance, the City Council desires to establish permanent regulations with respect to this issue. Ordinance No. 1986 Page 2 D. The City Council has determined that conversion of rental multifamily housing to condominiums, hotels, or other uses results in the displacement of the occupants and residents of the rental multi -family housing. E. It is the intent of the City Council to maintain a strong and effective regulatory program protecting vulnerable residents of rental multi -family housing who, absent the City's legislative action, might suffer significant and irreparable harm during the conversion process, including being rendered homeless. This Urgency Ordinance provides protections to occupants and residents displaced by the conversion of rental multi -family units by requiring the provision of minimum notice and relocation assistance to ensure an orderly, fair, and reasonable opportunity to find and relocate to suitable replacement housing. By doing so, this Ordinance (i) addresses an identifiable and urgent challenge to the public health, safety and welfare, and (ii) advances community and individual concerns by establishing permanent regulations through which citizens can be protected from adverse impacts of a changing real estate market, e.g., evictions, without cause, adequate notice of eviction or any relocation assistance, that may arise from and relate to conversions. F. On March 20, 2019, the City Council held a noticed public hearing on the proposed Ordinance in accordance with applicable law. G. The City Council finds that the adoption of this Ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA Guidelines, 14 California Code of Regulations, Chapter 3: the Ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a "project" under CEQA, and is an organization or administrative activity of the City that will not result in direct or indirect physical changes in the environment. H. The City Council has carefully reviewed and considered all of the evidence presented in connection with the hearing on this Municipal Code amendment, including, but not limited to, the staff report, and all written and oral testimony presented. I. The City Council finds that approval of this Urgency Ordinance would accomplish the following: 1. Provide consistency with the goals and policies of the Palm Springs General Plan relative to rental multi -family housing, by establishing conversion procedures that protect the needs of residents in at -risk units. 2. Establish notification and relocation procedures for the conversion of rental multifamily housing units to hotel use or other residential or commercial uses, similar to the procedures currently in place for the conversion of rental multifamily units to condominiums; Ordinance No. 1986 Page 3 3. Reduce or eliminate the current and immediate threat to the public peace, health and safety of the City's residents due to exacerbation of the City's homeless issues through the adverse impacts that result from no -cause evictions and displacement of City residents with insufficient notice and inadequate relocation assistance. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. That the findings and determinations reflected above are true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by and through this Urgency Ordinance. The City Council hereby finds that this Urgency Ordinance is necessary for the current and immediate protection of the public health, safety and welfare of the City and its residents. SECTION 2. Add Chapter 5.85 to the Palm Springs Municipal Code as follows: Chapter 5.85 TENANT RELOCATION AND PROTECTION REQUIREMENTS 5.85.010 Purpose and Intent. The City recognizes that rental multifamily housing units are an important component of the housing that is available to residents of the city, and that the conversion of rental multifamily housing to other uses results in adverse impacts to tenants such as difficulty in finding suitable, affordable, and accessible housing, resulting in homelessness and a strain on City resources in addressing such issues. It is the purpose and intent of this chapter to allow the conversion of rental multifamily housing units to other uses, while providing tenants of such housing units adequate protections as a means to prevent homelessness and other serious impacts to public health and welfare. 5.85.020 Definitions. For the purposes of this chapter, the following words and phrases shall have the meaning ascribed to them by this section: "Rental multifamily housing unit" means a room or suite of two (2) or more rooms with a single kitchen in a multifamily dwelling, occupied or suitable for occupancy as a residence for one (1) family, and which is offered for rent or lease for periods of longer than twenty-eight (28) days. Ordinance No. 1986 Page 4 "Person with a disability" means a person who has a physical or mental disability that makes achievement of a major life activity difficult, as defined by the California Fair Housing and Employment Act (FEHA) California Government Code section 12926, as amended. "Senior citizen" means an individual who is at least sixty-two (62) years of age. 5.85.030 General Requirements. Each approved application for any permit, license or entitlement for the conversion of any rental multifamily housing unit or units to any use other than rental multifamily housing, shall be conditioned upon the provision of the tenant assistance components described in Section 5.85.040 of this chapter, subject to the conditions provided. Each tenant assistance component specified herein shall be provided to each tenant residing in the property subject to the conversion at the time the application is submitted and for each tenant who resided therein during the period one (1) year immediately prior to the application. 5.85.040 Tenant Assistance Components. The following are the required tenant assistance components to be imposed as a condition of approval for any approved conversion: A. Relocation assistance required. The applicant shall be required to pay each tenant an amount equal to three (3) month's rent paid by the tenant, plus one additional month for each year over three (3) years the tenant resided in the unit. B. Applicability period. During the pendency of the conversion application, the year immediately prior to the date of the application, and the period of time between the approval of an application for the conversion and the date the tenant is required to vacate consistent with the provisions of this chapter, no tenant shall be required to vacate the premises unless the tenant is afforded the rights and benefits provided in this chapter. C. Increase in rent. During the period identified in subsection B of this section, rent shall not be increased more than once every twelve (12) months in an amount that does not exceed an amount equal to the cost of living for such twelve (12) month period as determined by the City Manager or the City Manager's designee. D. Tenant notification requirements. Each tenant shall receive at least ninety (90) days' notice for any rent increase or for any eviction or non -renewal of lease without cause. Tenants who are senior citizens Ordinance No. 1986 Page 5 or persons with a disability shall receive no less than one -hundred eighty (180) days' notice for any rent increase or for any eviction or non -renewal of lease without cause. The applicant shall also notify the City of each eviction, rent increase, or non -renewal of lease within ten (10) days of such notice being provided to any tenant. E. Duties of applicant. At the time the application is submitted, and before the application will be accepted as complete, the City shall be provided the following: 1. A list of the names of all tenants covered under the terms of subsection B above and their addresses and relevant contact information; and 2. Documentation acceptable to the City Manager that each tenant received a letter that adequately describes and explains the rights provided under the provisions of this chapter. 5.85.050 Violations. It is unlawful for any person to violate any provision or to fail to comply with any of the requirements of this chapter. Any person violating any of the provisions or failing to comply with any of the requirements of this chapter may be subject to penalties and other enforcement action as authorized by Chapter 1.01 of this Code. SECTION 3. Pursuant to City Charter Section 312 and California Government Code Section 36937, this Ordinance is designed to protect the health, safety and welfare of the citizens of the City of Palm Springs and becomes effective immediately up adoption by a four -fifths (4/5) vote of the City Council. The City Council hereby finds that there is an urgent need to adopt these regulations in order to eliminate the current and immediate threats set forth above. SECTION 4. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation. SECTION 5. The City Council determines that the adoption of this Ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA Guidelines, 14 California Code of Regulations, Chapter 3: the Ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a "project" Ordinance No. 1986 Page 6 under CEQA, and is an organization or administrative activity of the City that will not result in direct or indirect physical changes in the environment. SECTION 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law. ADOPTED THIS 20TH DAY OF MARCH, 2019. 0 ANTHONY Jj M CITY CLER ROBERT MOON MAYOR CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) SS. CITY OF PALM SPRINGS) I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, California, do hereby certify that Urgency Ordinance No.1986 is a full, true, and correct copy, and was adopted without introduction at a regular meeting of the City Council held on the 20th day of March, 2019 by the following vote: AYES: Councilmembers Holstege, Middleton, Roberts, Mayor Pro Tern Kors, and Mayor Moon NOES: None ABSENT: None ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this '* ' day of - " , 2019. ' (HONY MEJ C CITY CLE.