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7.D. - Page 2 of 7 • Converting a building into a condominium, community apartment or stock cooperative; • Changing the residential use to a non-residential use that requires a permit from the City. The Ordinance requires landlords to provide eligible tenants with three months' rent based on the Fair Market Rent for a similar -sized unit, as published by the U.S. Department of Housing and Urban Development (HUD) for San Mateo County. Eligible households that can meet one of the following special circumstances criteria will receive an additional month of rent for a total of four months' rent: • At least one household member is 62 years of age or older • At least once household member qualifies as disabled • A household with one or more minor children (under eighteen (18) years of age) who are legally dependent • A household that has occupied their unit as their primary residence for or more consecutive years The Ordinance implementation process includes using a third -party provider to coordinate with landlords, screen tenants for eligibility, hold informational meetings with tenants, respond to questions, and disperse relocation assistance payments. The Housing Division is responsible for overseeing the third - party provider as well as fielding inquiries, managing data, and reviewing and approving all notices, mailings, and relocation payment requests. Pursuant to Section 42.6 of the Ordinance, landlords are required to pay the fee of the third -party agency and the City may collect an administrative fee in an amount set by resolution. At the time the Ordinance was adopted, the City Council did not establish an administrative fee by resolution. ANALYSIS Staff propose adding a Relocation Assistance fee that will cover staff time related to administering the Ordinance and the actual costs of contracted relocation assistance services. In setting the amount of the fees, staff based the fees on the estimated cost of providing the service. Staff has relied on a comprehensive fee study completed in February of 2017 by Matrix Consulting Group for the methodology. The methodology includes using the fully burdened hourly rate for positions involved and the estimated time needed to provide the service. This is a common methodology used by most cities and governmental entities throughout the State. The following are the proposed Relocation Assistance fees. (proposedTable 1: Relocation Assistance Service Amount Relocation Assistance Administrative Fee (properties with 5 to 10 units) $331 Relocation Assistance Administrative Fee (properties with 11 to 20 units) $540 Relocation Assistance Administrative Fee (properties with 21 units and above) $663 Third Party Relocation Assistance Actual Costs Page 2 of 4 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 618