Tuesday, September 21, 2010

Santa Cruz City Council Approves Rental Ordinance

Santa Cruz City Council

Approves Rental Ordinance

By SHANNA MCCORD

Posted: 09/08/2010 01:30:37 AM PDT


SANTA CRUZ -- City leaders will begin monitoring the thousands of rental units around town, especially those that are poorly maintained, have too many tenants and are illegally constructed.

The Santa Cruz City Council passed an ordinance Tuesday that requires owners of rental properties to register their units and submit to an inspection, if called to do so.

The vote was 5-1 with Councilman Tony Madrigal voting against the measure because of his concerns that the ordinance could adversely affect low-income residents and increase rent.

The ordinance was met with opposition by residents who say the new rule is an overreaching money-making scheme that violates personal privacy and property rights.

Nick Bulaich -- a Watsonville resident who doesn't have any rentals in Santa Cruz but said he was voicing the concerns of some property owners -- was among more than a dozen people who criticized council members for creating an ordinance they believe is unconstitutional and could displace tenants and drastically drive up rental rates.

"President Bush never went this far, stepping into someone's home. This is something so invasive," Bulaich said. "Every single tenant in Santa Cruz is going to get a rent increase because of you, because landlords have to pass this fee along."

Property owner and landlord Anthony Silvera said the rental ordinance is "a desperate masquerade" to generate revenue for the city.

One property owner spoke in support of the rental ordinance.

Council members say the measure, which will be overseen by the Planning Department, is necessary to target suspected illegal units and negligent landlords rather than come after unpermitted construction that doesn't pose an immediate threat to residents or neighbors. Enforcement of city codes already in place to regulate rental housing hasn't been successful, council members said.

The emphasis, they said, will be health and safety.

"It's notorious in this city there are thousands of illegal units. No one in this city who's ever paid attention can look me in the eye and tell me we don't have a problem," Mayor Mike Rotkin said.

The ordinance is part of an agreement with UC Santa Cruz to control future student growth.

Thousands of students live in rental units in town, a fact that contributed to the university's agreement to house two-thirds of students on campus as part of the 2008 pact that settled lawsuits over its growth plan.

The annual registration fee for property owners is expected to be $45 and a minimum inspection fee of $20.

The fees, in addition to contributions from UCSC, will pay for two new city inspectors, a clerk and other program expenses estimated to cost about $322,000 a year.

The first three years of the program will be focused on properties with the biggest problems, not those that are eligible to "self-certify."

Councilwoman Lynn Robinson said complaints to city officials about severely shabby rental units are common.

"The nanny state criticism by some people tonight, I actually understand that," Robinson said. "But, we're going after the health and safety issues that are constantly brought to our attention. It's very egregious, it's very real."

The council ordered Planning Department officials to deliver a report in one year with details on how the ordinance is working.

Councilwoman Katherine Beiers was absent for the vote.

More information can be found on the City Government/City Council section of the City's website www.cityofsantacruz.com under the council meeting agendas. The agenda of August 3 has a lot of good material on the ordinance.

The program will likely go into effect in 2011. It is believed that registration of rental units will begin after January 1 and there will be a two month window for registration. There will be additional work done by the planning department staff to design the specifics of the implementation of the program. The City Council will also adopt the specific "inspection checklist" later this year so it will be clear to property owners exactly what the inspection program will look at.

In addition to the ordinance, below is the excerpt from the city council minutes to see the resolution clarifying the intent in terms of enforcement of the ordinance.

Minutes Excerpt

  • Amendments to Title 21 of the Santa Cruz Municipal Code Adding
    Chapter 21.06 Regarding a Citywide Rental Inspection Program.
    (Environmental Determination: Exempt from CEQA) (City of Santa Cruz,
    Applicant)
    • Action: Council member Mathews moved, seconded by Mayor Rotkin, to introduce Ordinance No. 2010-17 for publication amending Title 21 of the Santa Cruz Municipal Code adding Chapter 21.06 regarding a citywide
      residential rental inspection and maintenance program, adopting the
      following Statement of Intent to be included with the motion:
      • It is the intent of the City Council, and its direction to City staff, that City inspections and the self-certification process focus on the
        items contained in the draft self-certification checklist and ensure
        that inspections address: (a) un-permitted dwelling units; (b) the
        renting of spaces not intended for habitation; and (c) substandard
        overcrowded, unsanitary and unsafe housing conditions that render
        a housing unit unfit or unsafe for occupancy. Un-permitted
        construction and construction which is not code compliant but
        which does not result in (a), (b) or (c) shall not be a priority, unless
        that construction results in neighborhood nuisances;
        and to direct staff to come back, after consulting with landlords and other interested parties, with a resolution that will incorporate the checklist of items the inspection will cover, and with further direction that a report come back to the City Council within one year of program implementation. The motion carried unanimously (Council members Madrigal, Robinson
        absent).