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Rent Review Board 2 February 13, 2001 BACKGROUND As part of proposing a Rent Review Program for San Leandro, the Ad Hoc Committee requested that staff look at program models in various Bay Area cities, particularly in Alameda and Fremont, which have operated successful mediation programs for 21 years and three years, respectively. The circumstances surrounding the latest wave of rent increases in San Leandro are very similar to those encountered in the two cities. For this reason, the proposed program incorporates some elements from both the Alameda Rent Advisory Committee, established in 1979, and the Fremont Residential Rent Increase Dispute Resolution Ordinance, adopted in 1997. There are three significant components of the proposed San Leandro program: 1. Rent increases are null and void if a landlord fails to appear at the Rent Review hearing as required. 2. Rent increases are limited to one per 12 months, with exceptions granted for certain circumstances on a case -by -case basis. 3. The Rental Housing Owners Association of Southern Alameda County (RHO) will participate in the review and mediation process by intervening in cases where the Review Board hearing is unsuccessful. The elements of the proposed San Leandro Rent Review Program and the hearing process are outlined in Attachment A. From October 2000, to January 2001, approximately 150 tenants from different parts of the city contacted City Council members, City staff and ECHO Housing to complain about what they felt were unreasonable rent increases. Following is the break-out of the rent increase ranges for the four - month period. Increase Amount Less than $75 per month $76 to $149 per month $150 to $299 per month $300 to $500 per month Percentage of Tenant's Rent 5% 36% 32% 27% There are approximately 12,000 rental units in San Leandro, including single-family homes. The highest rental increases are reported in properties of 5 1 + units. The current housing staff consists of one half-time professional and one half-time clerical support position. Based on input from other cities where a review and/or mediation process is in place, implementation of a rent review process would require 40% of a full-time position at the Housing Specialist level and 60% of a full-time position at the Clerk Typist/Administrative support level. It is recommended that a half-time clerical position be created to staff the rent review program. U