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File Number: 15-582 <br />the rising rents in San Leandro. For the 3rd quarter of 2015, year over year occupancy <br />rankings among 13 Alameda County cities, San Leandro has the highest rate at 98.9% (see <br />Attachment B). <br />Historically, the City has experienced a long-term pattern of sustained rental affordability in <br />comparison to other nearby cities with occasional upward rent increases followed by extended <br />periods of declining or stable rent levels (i.e., post -2008 recession impacts). The Rent Review <br />Board's case review activity since its inception in 2001 follows the rent growth rate pattern of <br />long periods of inactivity and occasional increases in caseload, with the most notable surge <br />(26 cases from 10 properties, though the majority of cases were primarily from two properties) <br />in fiscal year 2014-15. In FY 2015-2016 to date, there have been 52 rent review hearing <br />requests received, 21 of which have been heard by the Rent Review Board (see Attachment <br />C). <br />Analysis <br />Over the past 14 years, since the Rent Review Ordinance was adopted, numerous items have <br />arisen and revisions to the Ordinance are recommended to address them. The amendments <br />below are recommendations from the Rent Review Board which were informed by public <br />feedback and the the program implementation experiences of City and ECHO Housing staff. <br />The amendments include new provisions to enhance the Ordinance and revisions to provide <br />better clarity on the intent and requirements of the Ordinance. <br />Assess Ratio Utility Billing System (RUBS) charges, upon initial conversion, as a <br />rent increase and therefore considered as a factor toward eligibility for review by <br />the Board. RUBS is when landlords subcontract out utility billing to a third party. The <br />tenants pay their utility bills to the third party rather than to the landlord. The 2015- <br />2023 Housing Element recommended that staff evaluate RUBS charges as a rent <br />increase and consider these initial charges as eligible for Board review. <br />Include duplexes as eligible residential properties for rent review. Under the <br />current Ordinance, only buildings with three or more rental housing units are eligible for <br />rent review. Per the 2009-2013 American Community Survey (U.S. Census Bureau), <br />there are almost 2,000 duplex/triplex/quadruplex housing units in San Leandro, and <br />under the current Ordinance, tenants in these units are not eligible for a rent review <br />because their rental housing units are detached, separate buildings. <br />Clarify that landlords must re -notice tenants with proper rent increase notices if <br />they provided improper rent increase notices. This clarifies that landlords must <br />properly re -notice a tenant prior to demanding or accepting any increase in rent. <br />• Raise the existing $75 rent increase threshold to $100 plus annually adjust by the <br />Consumer Price Index (CPI), in considering eligibility for a rent review. The <br />existing $75 rent increase threshold is outdated as current rent levels are significantly <br />higher today than in 2001 when the Ordinance was adopted and as current rent <br />increase amounts are exceeding the $75 rent increase threshold. <br />The Board recommended the $100 threshold at its November 17, 2015 meeting. Staff <br />City of San Leandro Page 4 Printed on 1211/2015 <br />