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8.A. - Page 5 of 24 policy initiatives, staff had expected to conduct community engagement associated with any proposed modifications to these ordinances. ANALYSIS Redwood City Impacts Since the passage of AB 1482 the City has received several inquiries from landlords, property managers and tenants regarding the impacts of AB 1482 in Redwood City. City staff has received three calls from property managers upset with the new state law and stating that they will be increasing rents in advance of January 1, 2020 when the law goes into effect because their current rents are significantly under market and AB 1482 will restrict their ability to catch up to the market in the future. The City Council and staff also has received tenant testimonials that some landlords are significantly increasing rents prior to the end of 2019, in what appears to be an attempt to evict tenants during a brief window ahead of the January 1, 2020 effective date of AB 1482. These are summarized in Attachment A. The City Council and staff have also been notified that some landlords are increasing security deposits and newly requiring tenants to pay for utilities, actions which present a burden for tenants. Rent increases of 12% and 32% have been documented. AB 1482 will require that rent increases not exceed 10% for tenants who have occupied a property for more than 12 months and be linked to annual increases in CPI plus 5%. For Redwood City, the 2019 increase is 9%. Additionally, the City has received complaints of 60 day no cause eviction notices that have been sent to tenants. This would evict tenants prior to January 1, 2020. Current state law allows landlords to evict renters without just cause, as long as a two-month notice is given. Due to the increased number of expressed concerns, and the potential unintended consequence of landlords/property owners acting to significantly increase rents or remove tenants before the new protections are effective, staff has drafted an Urgency Ordinance including two interim measures (just cause eviction protections and rent stabilization protections) that the City Council may wish to consider. If adopted by a vote of at least 6 Councilmembers, the Urgency Ordinance would be in effect immediately and through December 31, 2019, with AB 1482 going into effect statewide on January 1, 2020. Under typical circumstances, the City Council directs staff to conduct research and engage in robust community engagement initiatives to receive input from stakeholders and the public on proposed policies. Because the reports of adverse impacts on tenants have only surfaced since Governor Newsom signed AB 1482 into state law, there has not been time to conduct substantial research or engagement with tenants or property owners and landlords. This increases the possibility that adopting of one or more interim measures may have unintended consequences or may ultimately be ineffective. Any risk is mitigated, to some extent, by the fact that the proposed ordinances only would be in place through December 31, 2019. At a minimum, staff recommends communicating with Redwood City tenants that legal resources are available to them as they navigate changes in their lease terms which may present hardships. Providing legal counsel can help tenants advocate more effectively for themselves. Staff also recommends communicating with property owners and landlords of their obligations under AB 1482 and any locally- City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 125