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The HHCC carefully considered, discussed and debated each policy and concluded <br />their research process with unanimous recommendations. The HHCC sought to strike a <br />balanced approach to each policy for the benefit of both tenants and property owners. <br />Their recommendations were also based on legal mandates, best practices, potential <br />feasibility and community input. <br /> <br />On June 26, 2017, Council received the HHCC follow up housing policy analysis and <br />recommendations on minimum lease terms and relocation assistance and Council <br />directed staff to draft ordinances for each and conduct a full legal review prior to Council <br />consideration of the final implementing ordinances. The Council also accepted the <br />HHCC recommendation that an Inclusionary Zoning Ordinance be considered in the <br />future. <br /> <br />ANALYSIS <br /> <br />Minimum Lease Terms Ordinance <br />The Minimum Lease Term Ordinance requires landlords to offer a minimum one-year <br />lease term to provide more stability for tenants by protecting them against rent <br />increases for the duration of the lease period. Tenants also have the option to negotiate <br />a lease term of less than one year that a landlord must consent to as an alternative to <br />the minimum one-year lease term, which can provide flexibility for the tenant and the <br />landlord. However, while a landlord is required to offer a tenant a new lease at the end <br />of the succeeding lease term, if the landlord chooses to renew the lease with that <br />tenant, the landlord is free to demand whatever rental rate the market will bear at the <br />time of lease renewal. There are no constraints on landlord raising rents at the end of <br />the lease agreement and each time the lease agreement is renewed. <br /> <br />The ordinance is applicable to residential projects that include three or more units for a <br />few primary reasons. Less than three units are considered smaller properties (“Mom <br />and Pop” landlords) and generally have lower rents and less ability to absorb cost <br />increases and the reduced flexibility associated with minimum lease requirements as <br />compared to larger rental developments. The second primary reason for applying the <br />ordinance to properties with three or more units is to avoid creating disincentives for <br />accessory dwelling units, which are considered to be a form of affordable housing. The <br />following are exempt from the ordinance: <br /> <br />· A single-family dwelling; <br />· Duplexes; <br />· Rooms or accommodations in hotels and boardinghouses which are rented to <br />transient guests for a period of less than thirty consecutive days; <br />8.A. - Page 3