Ordinance No. 2026-001 (Rent Stabilization)

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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO ORDINANCE NO. 2026-001 ORDINANCE ADDING CHAPTER 4-46 TO THE SAN LEANDRO MUNICIPAL CODE TO ESTABLISH RESIDENTIAL RENT STABILIZATION WHEREAS, the City Council of the City of San Leandro finds that access to safe, decent, and affordable rental housing is vital to neighborhood stability, the local economy, and the well-being of residents; and WHEREAS, rising rents, insurance costs, property taxes, and capital improvement expenses are making it increasingly difficult for San Leandro residents to find and keep housing in the City; and WHEREAS, rapid rent increases and housing instability contribute to displacement of long-term residents, loss of economic diversity, and disruption of neighborhoods, and further projected that substantial compliance and full cost recovery could take three to five years; and WHEREAS, over the last two years, the City has conducted extensive public outreach, including in-person and virtual meetings with interpretation in Spanish and Cantonese and a sixty-day public comment period on draft ordinance text; and WHEREAS, during this process, tenants, landlords, and community organizations shared their views. Tenants raised concerns about rent increases and the risk of displacement for lower-income residents, seniors, and people with disabilities; and WHEREAS, data presented to the City Council also indicated that median rents in San Leandro have increased at a rate exceeding both wage growth and inflation in recent years, with many renter households spending more than thirty percent (30%) of income on housing costs, underscoring the need to moderate rent escalation to preserve affordability; and WHEREAS, numerous other municipalities, as well as the California Legislature, have established limits on landlords ability to raise the rent on residential units; and WHEREAS, the City Council finds that a limitation on annual rent increases is necessary to promote stability, mitigate displacement pressures, and align rent growth with local income trends, while maintaining consistency with state laws; and WHEREAS, the City Council acknowledges that any local rent regulation must comply with the Costa-Hawkins Rental Housing Act (California Civil Code § 1954.50 et seq.) and the California Tenant Protection Act of 2019 (Assembly Bill 1482). These state laws exempt certain housing types, including single-family homes, condominiums, and newly constructed dwellings, from local rent caps. The City’s program is therefore designed to balance tenant stability with ensuring a fair and reasonable return for property owners; and