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HomeMy WebLinkAbout4/4/2018 - STAFF REPORTS - 3B PALM s.* a u m °gJiro % CITY COUNCIL STAFF REPORT DATE: April 4, 2018 LEGISLATIVE SUBJECT: ADOPTION OF AN INTERIM URGENCY ORDINANCE (EXTENDING INTERIM ORDINANCE NO. 1927) OF THE CITY OF PALM SPRINGS, CALIFORNIA, REQUIRING THE IMPOSITION OF CERTAIN TENANT RELOCATION AND PROTECTION AS A CONDITION OF APPROVAL OF DISCRETIONARY LAND USE ENTITLEMENTS BY THE CITY OF PALM SPRNGS TO APRIL 5, 2019 AND MAKING APPROPRIATE FINDINGS UNDER CEQA (4/51hs Vote Required re Interim Urgency Ordinance) FROM: David H. Ready, City Manager BY: Edward Z. Kotkin, City Attorney SUMMARY The City Council adopted Urgency Ordinance No. 1923 on April 5, 2017. Ordinance 1923, established interim regulations for the imposition of certain tenant relocation and protection as a condition of approval of discretionary land use entitlements by the City of Palm Springs. As Ordinance 1923 was expiring, the Council extended its provisions applicability through April 5, 2018, adopting Urgency Ordinance No. 1927 on May 3, 2017. Pursuant to Council direction, staff now returns to extend Ordinance No. 1927 for another year. RECOMMENDATION: Waive the reading of the text in its entirety, read by title only, and adopt Ordinance No. , "AN INTERIM URGENCY ORDINANCE (EXTENDING INTERIM ORDINANCE NO. 1927) OF THE CITY OF PALM SPRINGS, CALIFORNIA, REQUIRING THE IMPOSITION OF CERTAIN TENANT RELOCATION AND PROTECTION AS A CONDITION OF APPROVAL OF DISCRETIONARY LAND USE ENTITLEMENTS BY THE CITY OF PALM SPRNGS TO APRIL 5, 2019 AND MAKING APPROPRIATE FINDINGS UNDER CEQA." (4/5ths Vote Required) STAFF ANALYSIS: In approving the initial urgency ordinance on April 5, 2017, the Council determined that Interim Urgency Ordinance No. 1923 would only be in effect through May 3, 2017, the Council's first meeting in May of 2017. However, the Council also indicated that it wanted to consider adoption of a longer term urgency ordinance after the public was R'EM NO. I A-_ ,�EPALMSA9 iy � a V N °gi,FO CITY COUNCIL STAFF REPORT DATE: April 4, 2018 LEGISLATIVE SUBJECT: ADOPTION OF AN INTERIM URGENCY ORDINANCE (EXTENDING INTERIM ORDINANCE NO. 1927) OF THE CITY OF PALM SPRINGS, CALIFORNIA, REQUIRING THE IMPOSITION OF CERTAIN TENANT RELOCATION AND PROTECTION AS A CONDITION OF APPROVAL OF DISCRETIONARY LAND USE ENTITLEMENTS BY THE CITY OF PALM SPRNGS TO APRIL 5, 2019 AND MAKING APPROPRIATE FINDINGS UNDER CEQA (4/5ths Vote Required re Interim Urgency Ordinance) FROM: David H. Ready, City Manager BY: Edward Z. Kotkin, City Attorney SUMMARY The City Council adopted Urgency Ordinance No. 1923 on April 5, 2017. Ordinance 1923, established interim regulations for the imposition of certain tenant relocation and protection as a condition of approval of discretionary land use entitlements by the City of Palm Springs. As Ordinance 1923 was expiring, the Council extended its provisions applicability through April 5, 2018, adopting Urgency Ordinance No. 1927 on May 3, 2017. Pursuant to Council direction, staff now returns to extend Ordinance No. 1927 for another year. RECOMMENDATION: Waive the reading of the text in its entirety, read by title only, and adopt Ordinance No. , "AN INTERIM URGENCY ORDINANCE (EXTENDING INTERIM ORDINANCE NO. 1927) OF THE CITY OF PALM SPRINGS, CALIFORNIA, REQUIRING THE IMPOSITION OF CERTAIN TENANT RELOCATION AND PROTECTION AS A CONDITION OF APPROVAL OF DISCRETIONARY LAND USE ENTITLEMENTS BY THE CITY OF PALM SPRNGS TO APRIL 5, 2019 AND MAKING APPROPRIATE FINDINGS UNDER CEQA." (4/5th5 Vote Required) STAFF ANALYSIS: In approving the initial urgency ordinance on April 5, 2017, the Council determined that Interim Urgency Ordinance No. 1923 would only be in effect through May 3, 2017, the Council's first meeting in May of 2017. However, the Council also indicated that it wanted to consider adoption of a longer term urgency ordinance after the public was rmM NO. 3- ,13- _ City Council Staff Report April 4, 2018-- Page 2 Extension of Interim Ordinance No. 1927 afforded a reasonable opportunity to review and comment on the urgency ordinance. A noticed public hearing on the proposed ordinance took place for May 3, 2017. After completing the hearing, the Council adopted Ordinance 1927 which expires on April 5, 2018. The program adopted by the interim urgency ordinances adopted to date works to the advantage of residents facing dire circumstances, and the City needs additional time to prepare a permanent ordinance for codification. As staff advised the Council in May 2017, the City receives, reviews, and approves various applications involving the conversion of multi-family rental housing to condominiums, hotels, or other uses. These conversions result in the displacement of the occupants and residents of the rental multi-family housing. The Council has expressed concerns that such displacement creates hardship and costly relocation expenses for these occupants and residents, that such displacement exacerbates existing homeless issues in the City, and that the City must take steps to codify a comprehensive program addressing these conversions. The proposed interim urgency ordinance is identical to Ordinance No. 1927 in content, and will continue to require that each conversion be conditioned upon certain minimum tenant relocation assistance to ensure an orderly, fair, and reasonable opportunity for displaced occupants and residents to find and relocate to suitable replacement housing. FISCAL IMPACT: No significant change to City revenue or expenditures is expected as a result of adopting the proposed urgency ordinance Edward Z. Kotkin, City Attorney David H. Ready, D., City Manager Attachments: A. Draft Interim Urgency Ordinance 02 ATTACHMENT A 03 ORDINANCE NO. AN INTERIM URGENCY ORDINANCE (EXTENDING INTERIM ORDINANCE NO. 1927) OF THE CITY OF PALM SPRINGS, CALIFORNIA, REQUIRING THE IMPOSITION OF CERTAIN TENANT RELOCATION AND PROTECTION AS A CONDITION OF APPROVAL OF DISCRETIONARY LAND USE ENTITLEMENTS BY THE CITY OF PALM SPRNGS TO APRIL 5, 2019 (4/5ths Vote Required) City Attorney's 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 these occupants and residents and can contribute to the existing homeless issue in the City. This Ordinance requires that each conversion will be conditioned upon certain minimum tenant relocation assistance to ensure an orderly, fair, and reasonable opportunity for displaced occupants and residents to find and relocate to suitable replacement housing THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS: A. The City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and pursuant to the authority granted the City by Sections 5 and 7 of Article XI, 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 pertaining specifically to tenant relocation protections. B. With that purpose and intent, the City Council adopted Urgency Ordinance 1923 on April 5, 2017 and Urgency Ordinance 1927 on May 3, 2017. C. The City Council has determined that conversion of multi-family rental housing to condominiums, hotels, or other uses results in the displacement of the occupants and residents of the rental multi-family housing. D. It is the intent of the City Council to have a strong and effective regulatory program protecting vulnerable residents of multi-family housing who absent the City's legislative action, might suffer significant and irreparable harm during the conversion process, and thereby (i) address an identifiable challenge to the public health, safety, and welfare, (ii) advance community and individual concerns by preserving the interim t 04 3 27.18 Ordinance No. Page 2 system through which this problem has been addressed to date, and (iii) allow staff adequate time to complete work on this subject matter, and return to the Council with a comprehensive regulatory framework that protects citizens from adverse impacts of a changing real estate market, e.g., evictions, without cause, adequate notice or any relocation assistance, that arise from and relate to conversions. E. The City Council finds that the multi-family residential matters addressed by this interim urgency ordinance are consistent with the goals and policies of the Palm Springs General Plan. F. The City Council finds that the adoption of this interim urgency ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA Guidelines, 14 Cal. 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 organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment. G. This interim urgency ordinance provides an interim set of regulations to protect occupants and residents displaced by the conversion of multi-family housing units by requiring the provision of minimum relocation assistance to ensure an orderly, fair, and reasonable opportunity to find and relocate to suitable replacement housing. This interim urgency ordinance extends Interim Urgency Ordinance No. 1927, adopted on May 3, 2017 and which will expire on April 5, 2018. The City Council of the City of Palm Springs ordains: SECTION 1. Each application for any entitlement for the conversion of any rental multi-family housing unit or units to any use other than rental multi-family housing, shall be conditioned upon the provision of the tenant assistance components described in Section 2 of this Ordinance, subject to the conditions provided. Except as otherwise provided in Section 3 of this Ordinance, 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 year immediately prior to the application. SECTION 2. The following are the required tenant assistance components to be imposed as a condition of any conversion: A. An amount equal to three months' rent paid by the tenant, plus one additional month for each year over three years the tenant resided in the unit. B. During the pendency of the application, the year immediately prior to the date of the application, and the period of time between approval of an application for conversion and the date the tenant is required to vacate consistent with 2 05 127,18 Ordinance No. Page 3 the provisions of this Ordinance, no tenant shall be required to vacate the premises unless the tenant is afforded the rights and benefits provided in this Ordinance. C. During the period identified in Subsection B of this Ordinance, 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 month period as determined by the City Manager or the City Manager's designee. D. Each tenant shall receive at least ninety (90) days' notice for any eviction, rent increase, or non-renewal of lease. Tenants who are seniors or persons with disabilities shall receive no less than One Hundred and Eighty (180) days' notice for any eviction, rent increase, or non-renewal of lease. E. At the time the application is submitted, and before the application will be accepted as complete, the City shall be provided (1) a list of the names of all tenants covered under the terms of this Ordinance under 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 Ordinance. The City shall also be notified of each eviction, rent increase, or non-renewal of lease within 10 days of such notice to any tenant under Subsection C above. SECTION 3. 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 4. Neither introduction nor adoption of this Ordinance represents a "project" for purposes of the California Environmental Quality Act (CEQA), as that term is defined by CEQA guidelines (Guidelines) section 15378, because this Ordinance is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines. 3 66 s.z7 18 Ordinance No. Page 4 SECTION 5. Additional Findings. A. The City is a charter city and this urgency ordinance is adopted pursuant to Section 312 of the Charter of the City of Palm Springs. B. Apartments are often multi-family residential rental properties that provide affordable housing for residents. Although the City provides a minimum amount of tenant protection when apartments are converted to condominiums, the City Council finds that these minimums are not sufficient in the current economic and housing environments nor do these protections apply to all situations involving the conversion of apartments from multi-family rental housing to other alternative uses, including without limitation hotels. C. Aspects of the public peace, health, and safety are not adequately protected due to lack of regulation for evictions from apartments without cause displacing residents with minimum notice and little if any relocation assistance. The impacts on the City, city resources, and the general public include without limitation that residents displaced as a result of such conversions face high degrees of difficulty or outright inability to find suitable, affordable, and accessible housing, thereby compelling such residents to live on the streets, in public places, or in their automobiles, exacerbating the existing homeless issues in the City and placing further strain on the minimal resources the City has to deal with its homeless issues. D. The Council finds the current and immediate problem constitutes a threat to the public peace, health, and safety of the City's residents due to the adverse impacts that result from no cause evictions and displacement of City residents with minimum, insufficient notice and inadequate relocation assistance, if any. E. In accordance with Section 312 of the Palm Springs City Charter, the City Council finds and declares this emergency measure to be necessary to preserve the public peace, health, and safety and that this Ordinance is necessary to prevent further evictions of tenants without cause, sufficient notice, and adequate relocation assistance. SECTION 6. The City Council hereby declares, on the basis of the findings set forth in the true and correct Recitals above, incorporated by this reference herein, and in Sections 4 and 5 above, that an urgency ordinance is warranted and that this Interim Urgency Ordinance is necessary to preserve the public peace, health and safety. Accordingly, this Interim Urgency Ordinance is adopted as such, and shall take effect and be in force immediately upon its adoption. This Interim Urgency Ordinance shall expire on April 5, 2019 unless otherwise extended by action of the City Council prior to such date, or superseded by a new comprehensive regulatory program adopted by the City to address the public peace, health and safety concerns addressed herein. 4 07 3.27,18 Ordinance No. Page 5 PASSED AND ADOPTED THIS DAY OF , 2018. AYES: NOES: ABSTAIN: ABSENT: Robert Moon, Mayor ATTEST: Anthony J. Mejia, MMC, City Clerk APPROVED AS TO FORM: Edward Z. Kotkin, City Attorney 5 pg 327 19