AgdaPkt 2016-10-24 Closed and Joint SA PFA HHCC

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7.A - Page 4 owners increasing rents only a few months into residency. The HHCC is recommending that tenants be offered minimum 6-12 month lease terms. Since a lease is a contract, rent could not be increased during this time period. Tenants may still opt for a shorter lease term, but it would be the tenant's choice. The HHCC suggested that the policy would need to consider whether it is applied to multi-family, and/or single- family homes. This would help provide stability over the longer term lease period. Mediation Programs: The HHCC is recommending a formal mediation program be adopted and required in certain circumstances. The process would include binding arbitration for tenant/landlord disputes related to rent increases of certain amounts. Relocation Policy. The HHCC is recommending that the City modify the current relocation ordinance, to address the following components: • The HHCC noted that the policy would need to clarify whether the relocation ordinance applied to everyone living at the residence or only those who are on the lease. Furthermore, whether it would apply to everyone, or only those who meet certain income levels, such as 80% or less of the area median income. • The ordinance would determine the maximum amount of financial relocation assistance and the formula for how it's determined. As an example, Mountain View requires the landlord to provide rent compensation equal to 3 months' rent for a comparable unit. • The ordinance would request refund of the security deposit • Landlord would pay for a rental assistance agency for 2 months to help household identify new accommodations. • The ordinance would require provision of special financial relocation assistance for special needs households (elderly, disabled). The ordinance would need to determine the maximum amount and the calculation method such as a lump sum payment or per person. • The ordinance would determine what type of units are covered. For example, any rental unit or apply only to buildings with 4 or more units. Inclusionary Zoning Ordinance: The HHCC is recommending the adoption of an inclusionary housing ordinance. It is important to note that since a 2009 court case, State law has prohibited inclusionary ordinances from applying to new rental developments. Therefore, any new inclusionary ordinance would only apply to "for- sale" housing, unless there is a change to state law. The HHCC recommends the ordinance contain the following components: • Require 15% of units per project be affordable on site, offsite or in lieu fees. • Eliminate Housing Impact Fee for residential and replace with fee of 15% of developer profit per unit (staff note: all fees must include a nexus study in order to be adopted; additionally, this approach is likely to be very challenging to administer). • Applies to rental and ownership (staff note: rental component would need to be put on hold until change in State law) • Build units concurrently with project Page 14