Ord 2026-007 Ordinance Rent Program Fee Pass-Through

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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO ORDINANCE NO. 2026-007 ORDINANCE AMENDING SAN LEANDRO MUNICIPAL CODE SECTION 4-46-175(C) TO PROHIBIT THE PASS-THROUGH OF THE RENT STABILIZATION PROGRAM FEE TO TENANTS WHEREAS, pursuant to Article XI, Section 7 of the California Constitution, the City of San Leandro ("City") has broad authority to maintain the public peace, health and safety of its community, preserve the quality of life for its residents, and may make and enforce all regulations and ordinances using its police powers to do so; and WHEREAS, on April 21, 2025, the City Council adopted Ordinance No. 2025-002, which added Chapter 4-45, "Rental Registry," to the San Leandro Municipal Code, requiring residential landlords to annually register rental units with the City and authorizing the City Council to establish a program fee by Resolution to recover the City's costs of administering the Rental Registry; and WHEREAS, on February 2, 2026, the City Council adopted Ordinance No. 2026-001, adding Chapter 4-46, "Residential Rent Stabilization," to the San Leandro Municipal Code, establishing limits on annual rent increases for covered residential rental units, with all requirements of that Chapter becoming effective on January 1, 2027, and authorizing the City Council to establish a program fee by Resolution to recover the City's costs of administering the Rent Stabilization program; and WHEREAS, Section 4-46-175(C) of the San Leandro Municipal Code, as added by Ordinance No. 2026-001, currently provides that up to fifty percent (50%) of the Rent Stabilization Program Fee may be allocated to a Tenant, to be paid by the Tenant in two equal installments paid six months apart, and that such payments shall not be included in the calculation of the Maximum Allowable Rent; and WHEREAS, the City Council finds that amending Section 4-46-175(C) to prohibit the pass-through of the Rent Stabilization Program Fee to tenants is consistent with the purposes and policies of Chapter 4-46 and is in the best interest of the public health, safety, and welfare of the City of San Leandro. NOW, THEREFORE, the City of San Leandro City Council does ORDAIN as follows: SECTION 1. Recitals. The above recitals are true and correct and made a part of this Ordinance. SECTION 2. Amendment to Municipal Code Section 4-46-175(C). San Leandro Municipal Code Section 4-46-175, subsection (C), is hereby amended to read as follows: (C) No portion of the Rent Stabilization Program Fee shall be passed through, allocated, or charged to a Tenant. The Rent Stabilization Program Fee shall be paid solely by the Landlord. Any lease provision, rental agreement, or other arrangement purporting to require a Tenant to pay all or any portion of the Rent Stabilization Program Fee is void and unenforceable. SECTION 3. All Other Provisions Unchanged. All other provisions of Chapter 4-46 of the San Leandro Municipal Code not expressly amended by this Ordinance shall remain in full force and effect.