Title:
Title
Ordinance Amending Section 5.156.050 of the Sacramento City Code Regarding Annual Rent Adjustment and Declaring the Ordinance to be an Emergency Measure [Two-Thirds Vote Required] {To be published in its entirety upon adoption}
End
FileID
File ID: 2019-01852
Location
Location: Citywide
Recommendation:
Recommendation
Adopt an Ordinance by two-thirds vote: 1) amending section 5.156.050 of the Sacramento City Code to reduce the annual rent adjustment; and 2) declaring the Ordinance to be an emergency measure to take effect immediately.
Contact: Tina Lee-Vogt, Program Manager, (916) 808-2679, Community Development Department
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Ordinance
Description/Analysis
Issue Detail: AB 1482 (Chui) (Chapter 597, Statutes of 2019) enacted the Tenant Protection Act of 2019. This new state law established an upper limit of 5% plus inflation (not to exceed 10%) on annual rent increases for rental units that are 15 years and older. This law was passed at the end of the legislative session and was amended on September 5, 2019 to reduce the rent cap from 7% to 5%. This new law became effective on January 1, 2020.
On August 13, 2019, the City Council enacted the Tenant Protection and Relief Act which established a rent limit of 6% plus inflation (not to exceed 10%). Due to the Costa Hawkins Act limitations, the City's ordinance applies to rental units that are 25 years and older (i.e., built on or before February 1, 1995).
The cost of living consumer price index included in AB 1482 differed from the index in the City's ordinance, although both were based on All Urban Consumers for All Items. The City's index further relied on Selected Areas, the western region cities with a population under 2.5 million (Size Class B/C). The difference as of October 2019 (compared to October 2018) was 1.8% under AB 1482 and 2.5% under the City's ordinance. There isn't a regional index for Sacramento. The clos...
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