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City of San Leandro <br />Meeting Date: April 20, 2015 <br />Staff Report <br />File Number: 15-203 Agenda Section: PRESENTATIONS <br />Agenda Number: 3.A. <br />TO: City Council <br />FROM: Chris Zapata <br />City Manager <br />BY: Cynthia Battenberg <br />Community Development Director <br />FINANCE REVIEW: Not Applicable <br />TITLE: Staff Report for Overview and Discussion of the City of San Leandro's Rent <br />Review Program <br />BACKGROUND <br />This report is for information only. Rents have been on the rise in San Leandro (and the San <br />Francisco Bay Area) over the last year resulting in a higher volume of Rent Review Board <br />hearings. Key features of the City's Rent Review Program Ordinance are outdated and require <br />clarification. To modernize and more effectively administer the Rent Review Program and <br />Board hearings, staff researched the issue and recommends modifications to enhance the <br />Ordinance. After feedback from City Council tonight and further public input, staff will bring <br />back proposed amendments to the Ordinance for City Council review and/or adoption Fall <br />2015. <br />Current Rental Market in San Leandro <br />Like many cities in the San Francisco Bay Area region, San Leandro rents are rising. Average <br />rent in the City increased 32.4% from 2006 through 2014 but was still below the rental growth <br />rate of over 50% for the Bay Area region (see Attachment A). Furthermore, the average rent <br />reached a peak in 2008 of $1,154.00, but then fell in 2010 to $1,086.00 (which was close to <br />the 2006 level) before trending upwards again to $1,377.00 in 2014. When annualizing the <br />City's eight year growth rate of 32.4%, the rate reflects a more modest 4% increase per year. <br />Key economic factors affecting the recent increase in rents in the City and the region include: <br />Under supply of new housing construction. The San Francisco Bay Area region <br />has not built sufficient new residential units for decades to meet its population growth. <br />Consequently, increased demand causes the rents for the limited housing supply to <br />increase. Many local housing markets, including San Leandro's, have not fully <br />recovered from the 2008 recession and many cities are seeking more investment in <br />City of San Leandro Page 1 Printed on 4114/2015 <br />