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4 <br /> <br />remodel of a unit not currently addressed by state law; and 2) draft a comprehensive Tenant <br />Protection Ordinance for City Council consideration, incorporating previously approved City <br />policies, as outlined in ADS (relocation assistance, minimum lease terms and just cause <br />protections), and right of return policy based on staff and focus group recommendations and <br />any recent changes to state law. <br />Current Protections and Requirements under State Law <br />State law, under the California Tenant Protection Act of 2019 (also known as Assembly Bill (AB) 1482 or <br />the TPA), currently provides the following protections: <br />• Limits annual rent increases to no more than 5% plus the local Consumer Price Index (CPI) or <br />10%, whichever is lower. <br />• Requires landlords to have “Just Cause” to terminate a tenancy and differentiates between at- <br />fault and no-fault just causes. <br />• Provides one month rent as relocation assistance when terminating a tenancy for a no-fault just <br />cause. <br />• Provides a clear definition of what is considered a “Substantial Remodel”. <br />• Outlines noticing requirements when terminating a tenancy for a substantial remodel. <br />• Includes the right to return to rental unit if a substantial remodel is not commenced or <br />completed. However, if the substantial remodel is completed, the TPA does not provide a right <br />to return. <br />More detailed information on the current protections and requirements under California State law can <br />be found in Attachment B. <br /> <br />Analysis <br />Criteria Considered in evaluating Right to Return options <br />In developing policy options, staff and the Ad Hoc took into consideration the following criteria: <br />1. Compliance with State and Case law <br />2. Whether the option reduces displacement <br />3. How complex and easy to understand a policy option is <br />4. The administrative capacity a policy option would require and how easy or difficult it is to <br />implement <br />Right to Return policy options <br />One of the key considerations with a right to return policy is what the rental rate will be when the <br />tenant returns to the unit. Utilizing the criteria listed above, staff developed the following options for <br />the rental rate that would be set, outlined in table 2 below. <br /> <br />Table 2 - Options for Rental Rates <br />Option Summary Considerations <br />9.A. - Page 66 of 84 <br />171