Fall 2022 CSFRA Rent Stabilization Landlord Newsletter

Rent Stabilization News Rent Stabilization Program

Why am I Receiving this Letter?

This newsletter is in your mailbox because you own or manage a rental property covered by the Community Stabilization and Fair Rent Act (CSFRA).

What is a Covered Unit?

Fall 2022

The CSFRA provides rent stabilization for most apartment buildings in Mountain View with 3 or more units built before February 1, 1995 and provides eviction protections for most 3 or more unit buildings built before December 23, 2016.

Inside this Issue

Check mountainview.gov/rentstabilization or call (650) 903-6136 to get updated information on your coverage.

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• CSFRA and Relocation Basics

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• Allowed Rent Increases and Compliance • Utility Billing Community Meetings

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• Property Registration • Capital Improvement Petitions • Mediation for Landlords and Tenants

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• Upcoming Workshops • Major Program Updates

Contact Us ―

Virtual Office Hours Every Tuesday 10 a.m. - 12 p.m.

Register at mountainview.gov/rspofficehours 650-903-6136 298 Escuela Ave. Mountain View, CA 94040 mvrent@mountainview.gov mountainview.gov/rentstabilization

We’re Here to Help!

CSFRA and Relocation Assistance Basics Rent Stabilization

Eviction Protections

Relocation Assistance

❑ All rent increases during a tenancy are limited by law ❑ Rent increases are limited to a certain percent every year ❑ Only one increase can be given every 12 months ❑ Increases can only be given if the landlord is in compliance with the law ❑ Both tenants and landlords can request individual rent increase or decrease adjustments from the City through a petition process

❑ Tenants cannot be asked to move out without a lawful reason ❑ Landlords must notify tenants of the reason in a written letter ❑ A tenant can only be evicted for 9 lawful reasons (“just causes”)

❑ Landlords may have to offer tenant relocation assistance if they evict tenants for the following reasons

• Failure to Pay

❑ If tenants qualify, they receive money and other support when terminated

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Rent Breach of Lease Nuisance Criminal Activity Failure to Give Access Necessary Repairs Owner Move-in Demolition Withdrawal from Market

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Necessary Repairs Owner Move-in Demolition Withdrawal from Market

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Spotlight on: Concessions Concessions are move-in specials, such as discounts or free months’ rent, that are provided by landlords to attract tenants and ease the costs of moving.

Concessions of the first month’s free or discounted rent do not affect Base Rent; but concessions beyond the first month are included in the calculation of Base Rent and may cause it to be reduced. Base Rent levels are used to calculate allowed rent increases.

If a concession is unlawfully applied, tenants may petition the City for a rent reduction using the petition process and may be awarded back rent if overpayment occurred.

Questions about rent?

Contact us.

650-903-6136 Mvrent@mountainview.gov

We want to hear from you!

Share your ideas on utilities billing during community meetings in Late January / Early February.

Visit mountainview.gov/rsp for details.

What Rent Increases are Allowed?

Rent increases for units with both rent stabilization and eviction protections are limited to the Annual General Adjustment (AGA), an increase based on the rate of inflation and approved by the Rental Housing Committee (RHC). Landlords may give this annual rent increase from September 1 through August 31 of each year.

If no increase is given, landlords may bank the increase and give it in a later year, together with the AGA for that year, for a total increase of up to 10%. Banked increases have additional noticing requirements. Qualifying tenants can file a Tenant Hardship Petition to request an exemption from banked increases.

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2022 AGA: 5% (Sept. 1, 2022 – August 31, 2023)

A landlord may increase rent when in compliance with the law: • • • • •

at least 12 months have passed since the last rent increase the landlord paid the annual Rental Housing Fees the property is registered with the City at mvrent.mountainview.gov the owner is otherwise in compliance the CSFRA (including not have outstanding code violations on the property) the tenant was served a written 30-day notice as required by state law

Compliance Enforcement The RHC adopted compliance and enforcement regulations to address landlords who are determined to be substantially non-compliant with the CSFRA. If a landlord is out of compliance, they cannot raise rents and/or file a petition for upward adjustment of rent, including Capital Improvement Petitions.

Beginning December 1, 2022, compliance and enforcement mechanisms include: •

Mailing non-compliance letters with a copy sent to affected tenants • Posting non-compliant properties to City website at mvrent.mountainview.gov

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Late fees of 4% per month for not paying annual rental housing fees • Late fees of $25 per unit per month for not completing the annual registration

Did you know?

Not signing a new lease is not a reason for eviction.

The CSFRA limits the reasons for eviction to 9 “just causes.” Not having or signing a lease renewal is not one of the 9 reasons. This means that tenants do not have to sign a new lease at the end of a lease. If tenants don’t a sign a new lease, the lease terms from the prior lease remain in effect. The tenancy becomes month to month for the tenant.

The tenant can terminate the tenancy with a 30-day written notice, but the landlord can only terminate for one of the 9 “just causes” and with proper written notice. The landlord may apply the effective AGA if it has been 12 or more months since the move-in date or since the last rent increase.

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Online Portal and Mandatory Property Registration

Online Property Registration Due Feb. 1, 2023 Register at mvrent. mountainview. gov

Due soon!

2022/23 Rental Housing Fee

$96 per unit Invoices mailed Jan. 2, 2023 and payment due Feb. 1, 2023.

The City of Mountain View Rent Stabilization Program provides online registration and noticing for all CSFRA covered units.

Landlords must update unit registration within 30 days in the case of a new tenancy, termination of a tenancy, or a change in ownership or management contact information.

The portal allows Landlords to: • Register Rental Properties • Manage Multiple Properties • Apply for a Rental Housing Fee Exemption

• Submit Termination Notices • Submit Termination Notice Follow-up Documentation

• Submit Tenant Buyout Notices • Provide Permit Documentation • Submit Banked Rent Increase Notices

All CSFRA covered units are required to be registered with the City through the online portal at mvrent.mountainview.gov.

Registration is due February 1 of each year. Unregistered properties are out of compliance with the CSFRA and unable to lawfully increase rent until registration is complete. To register your property online, use the APN and PIN provided in the description section of your Rental Housing Fee invoice (to be mailed early January 2022).

View the online user guide: mountainview.gov/registrationguide

Specified Capital Improvement Petitions Now Available!

Certain capital improvements now qualify for an expedited petition process to help landlords proactively maintain their properties. Landlords can now file Specified Captial Improvement Petitions with the City to receive a temporary rent increase above the AGA to cover a portion of the associated costs.

Call 650-903-6136, email mvrent@mountainview.gov or vist mountainview.gov/rsp/petitions to learn more.

Housing and Eviction Help Center The Housing and Eviction Help Center connects landlords and tenants in Mountain View with support services and housing resources. Come to clinics for 1:1 in-person assistance with housing programs, eviction questions, and support services.

1st and 3rd Thursdays of the month! 1-5 p.m.

• Mountain View Public Library • 585 Franklin St., 2nd floor, Program Room • No appointment needed Attend virtually during clinic hours at mountainview.gov/ housinghelpclinics.

Email mvrent@mountainview.gov to request support in other languages 48 hours in advance.

Mountain View Mediation Program Providing Free Dispute Resolution Services to the People of Mountain View for Over 40 Years Mediation helps people come together to talk about and potentially solve their disputes in a controlled environment. As possible solutions arise, trained mediators help guide participants toward a resolution of their own making. The process is designed to be a way to easily resolve disputes.

Successfully resolved cases include: • Landlord/tenant issues • Roommate conflicts • Co-worker conflicts • Security deposit issues • Neighbor issues • Contract disputes • Noise complaints • HOA disputes • Local merchant disputes It’s fast, confidential, free and effective!

Contact the Program today at mediate4mv@housing.org or by calling (650) 960-0495.

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Rent Stabilization Program City of Mountain View Post Office Box 7540 Mountain View, CA 94039-7540

PRSRT STD US POSTAGE PAID SAN JOSE, CA PERMIT 1206

ADDRESS CORRECTION REQUESTED

Live in Mountain View?

Interested in shaping the future of the city you call home?

We need residents like you to serve on the Rental Housing Committee!

Applications open in January for appointments starting in May. Check out mountainview.gov/rsp in early to mid-winter to apply!

City of Mountain View Rent Stabilization Program Updates

Upcoming Workshops Reasonable Accommodations and ADA Compliance (Open to All) November 17, 2022

Interactive Workshops - Property Owner Registration and Annual Fees (Landlord Focused) Dec. 15, 2022: Hybrid at Library – 4 p.m.

Jan. 2023 Virtual: 10 and 24 (10 a.m.)

Hybrid at Library: 12 (10 a.m.) and 26 (3 p.m.)

Feb. 2023 Virtual: 7 and 21 (10 a.m.)

Hybrid at Library: 9 (10 a.m.) and 23 (3 p.m.)

Mar. 2023 Virtual: 7 and 21 (10 a.m.)

Hybrid at Library: 9 (3 p.m.)

Hard Conversations: Mediation for Landlords and Tenants (Open to All) March 16, 2023 Location: Mountain View Public Library 585 Franklin St., 2nd Floor, Program Room Time: 4 p.m. (unless otherwise noted) Virtual/hybrid: mountainview.gov/rspwebinars

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Allowed Rent Increases: 2022 Annual General Adjustment (AGA) and Banked Increases - On May 23, 2022 the Rental Housing Committee adopted

the following allowable rent increase: • 2022 AGA for tenants in rent stabilized properties: 5% • Landlords can “bank" unused AGA increases and apply them later for a total increase of up to 10%. Qualifying tenants who receive a banked increase can petition the City for relief through the Tenant Hardship Petition Process.

• Concessions - At its June 20, 2022 and July 18, 2022 meetings, the RHC adopted regulations clarifying the proper calculation of Base Rent when concessions are provided. There are exceptions to Base Rent calculations when certain types of concessions are provided during the initial term of the tenancy.

• Landlords are now required to provide the CSFRA Rent Stabilization and Eviction Protections Information Sheet at the start of tenancy and when giving rent increases. The form is available at mountainview.gov/rsp/forms.

• Landlords must notify tenants of the type of concession they are providing and to clearly state Base Rent at the time of tenancy and when giving rent increases using the required Information Sheet.

• Compliance and Enforcement - During its Sept. 19, 2022 meeting, the RHC adopted compliance and enforcement regulations for properties that are determined to be substantially non-compliant with the CSFRA. Noncompliance with “substantial” requirements means a landlord cannot raise rents and/or file a petition for upward adjustment of rent.

See inside for details!

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Rent Stabilization Program (650) 903-6136 | mvrent@mountainview.gov Mountainview.gov/rentstabilization

COMMUNITY STABILIZATION AND FAIR RENT ACT (CSFRA) RENT STABILIZATION AND EVICTION PROTECTIONS INFORMATION SHEET This residential unit is protected by the City of Mountain View’s Community Stabilization and Fair Rent Act (CSFRA).

This summary of rights and responsibilities under the law is for informational purposes and must be presented to each tenant when signing a lease or upon service of a rent increase notice. For more information contact the City of Mountain View’s Rent Stabilization Program at (650) 903-6136 or mvrent@mountainview.gov or visit Mountainview.gov/rentstabilization.

How does the Community Stabilization Fair Rent Act affect this unit?

The CSFRA provides rent stabilization for most apartment buildings in Mountain View with 3 or more units built before February 1, 1995 and provides eviction protections for most 3 or more unit buildings built before December 23, 2016.

Notice of CSFRA Coverage: (Landlord must check box indicating coverage.)

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This unit is fully covered by the CSFRA. (Rent stabilization and eviction protections apply.)

This unit is partially covered by the CSFRA. (Only eviction protections apply.)

Eviction Protections

Rent Stabilization

❑ All rent increases during a tenancy are limited by law ❑ Rent increases are limited to a certain percent every year ❑ Only one increase can be given every 12 months ❑ Increases can only be given if the landlord is in compliance with the law ❑ Both tenants and landlords can request individual rent increase or decrease adjustments from the City through a petition process

☐

❑ Tenants cannot be asked to move out without a lawful reason ❑ Landlords must notify tenants of the reason in a written letter ❑ A tenant can only be evicted for 9 lawful reasons (“just causes”) • • • • • • • •

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Demolition Necessary Repairs Owner Move-in Withdrawal from Market Breach of Lease Criminal Activity Failure to Give Access Failure to Pay Rent Nuisance

Relocation Assistance

❑ Landlords may have to offer tenant relocation assistance if they evict tenants for the following reasons • Demolition • Necessary Repairs • Owner Move-in • Withdrawal from Market

❑ If tenants qualify, they receive money and other support when terminated

CSFRA Rent Increases and Rent Levels All rent increases during the tenancy are limited by law. The owner may increase the rent once every twelve (12) months and only if proper written notice of the increase is provided to the tenant. The Rental Housing Committee determines each year’s allowed rent increase (the “Annual General Adjustment” or “AGA”). A landlord may implement the current year’s AGA from September 1st of each year onward if in compliance with the law. Un-imposed rent increases can also be “banked” by the Landlord, meaning the AGA can be used or combined in following years for a total percentage increase of no more than ten (10) percent. If a landlord collects more rent allowed under the CSFRA, or gives an increase while out of DISCLAIMER: Neither the Rental Housing Committee nor the City of Mountain View make any claims regarding the adequacy, validity, or legality of this document under local, State or Federal law. This document is not intended to provide legal advice. Please visit mountainview.gov/rentstabilization or call 650-903-6136 for further information.

compliance with the Act, a tenant may file a petition with the Rental Housing Committee to be reimbursed for the overcharges. Landlords may also request a rent increase above the allowed AGA through City’s petition process.

Base Rent Levels If a tenant moved into their unit on or before October 19, 2015, the amount of rent charged on October 19, 2015 is the Base Rent. If a tenant moves into their unit after October 19, 2015, the Base Rent is the initial rental rate charged upon initial occupancy. "Initial rental rate" means only the amount of rent actually paid by the tenant for the initial term of the tenancy. For month-to-month leases and leases greater than twelve (12) month terms, the initial term means twelve (12) months. There are exceptions to Base Rent calculations when certain types of concessions are provided during the initial term of the tenancy.

If you cannot afford to make your rent payment, contact the Mountain View Rent Stabilization Program at (650) 903-6136 or mvrent@mountainview.gov for potential assistance referrals.

Concessions Concessions are move-in specials, such as discounts or free months’ rent, that are provided by landlords to attract tenants and ease the costs of moving. Concessions of the first month’s free or discounted rent do not affect Base Rent; but concessions beyond the first month are included in the calculation of Base Rent and cause it to be reduced. Base Rent levels are used to calculate allowed rent increases after the initial term of tenancy.

Notice of Move-In Rent Concessions: (Landlord must check box indicating concessions. If unit has concessions, Landlord must complete page 3.)

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This unit has concessions.

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This unit does not have concessions.

Eviction Protections Tenants have eviction protections, meaning they cannot be asked to move out without a lawful reason (even at the end of the lease term). A landlord may only evict a tenant for just-cause. The just causes for eviction are listed in Section 1705 of the CSFRA, which is available on the Rent Stabilization Program website at Mountainview.gov/rentstabilization.

For most of the reasons that involve tenant fault (other than not paying the rent), the landlord must give the tenant a notice to cease (warning letter) and a reasonable amount of time to correct certain problems before giving the tenant a termination notice. For non-payment of rent, the landlord must serve a Notice to Pay Rent or Quit (or termination notice) as required by State law. A landlord must file a copy of notices to cease and termination notices with the Rental Housing Committee within three days of serving it on the tenant.

There are also a few causes for eviction that are beyond a tenant’s control such as a landlord choosing to remove the rental property from the rental market, to redevelop the property or to live in a unit on the property. A tenant evicted for any of these reasons may be entitled to receive a relocation payment, depending on the income level and any special circumstances of the household. The landlord must follow certain procedures to evict a tenant as further detailed in the Tenant Relocation Assistance Ordinance including providing proper written notice to the tenant.

Maintenance, Repairs and Housing Services Generally, maintenance and repairs are a landlord’s responsibility. A landlord must maintain apartments and common areas in a safe and habitable condition. Tenants are required to take care of their apartment, and they may be responsible (liable) for the costs of repairs if they cause any damage beyond normal wear and tear. When there is a maintenance issue, tenants should let their landlord know immediately, particularly if it is an emergency. Additionally, tenants should give written notice to the landlord of the need for repair(s) and should keep a copy of the notice. If the necessary repairs are not completed within a reasonable period, the tenant may file a petition for rent decrease with the Rental Housing Committee. A petition for rent decrease may also be filed if a landlord reduces or removes certain housing services such as parking, storage, laundry areas or the right to have pets. State law requires that a landlord give tenants at least 24-hours’ written notice to enter their apartment for necessary or agreed upon repairs unless there is an emergency.

Este formulario está disponible en español y mandarín |此表格有西班牙语和中文版本 Rent Stabilization Program, City of Mountain View

Rev. 2022.08.10 Page 2

Notice of Move-In Rent Concessions Beginning September 1, 2022: Landlords offering move-in discounts by providing concessions must serve each tenant with this completed notice at the start of the tenancy.

Initial Rental Agreement Start Date:

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Term of Tenancy:

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First Month Concessions

Type of Concession (Describe)

Additional Concessions

Amount of Concession

Months Applied

Base Rent Calculation after Concessions 1. Concessions received in the first full month of the initial term of the tenancy can be excluded from base rent calculations.

If the initial rental agreement is month to month, or longer than 12 months, the Base Rent is calculated over the first 12 months of the initial term of the tenancy.

Monthly Rent Amount in Initial Rental Agreement: Base Rent Amount after Concessions (if applicable):

Examples of Base Rent Calculations after Concessions Example 1: Monthly rent $1,000; 12-month lease; Concession Received: First 1 month free.

The first month concession is excluded from the calculation Tenant paid 11 months of $1,000 = $11,000; Base Rent is $1,000 ($11,000/11 months = $1,000) Example 2: Monthly rent $1,000; 12-month lease; Concession Received: First 2 months free.

The first month concession is excluded from the calculation.

Tenant paid 10 months of $1,000 = $10,000; Base Rent is $909.09 ($10,000/11 months = $909.09) Example 3: Monthly Rent $1,000; 18-month lease; Concession Received: First 3 months free.

The first month concession is excluded from the calculation. The Base Rent is calculated over the initial 12 months.

In the first 12 months the tenant paid 9 months of $1,000 = $9,000; Base Rent is $818.18 ($9,000/11 months = $818.18) Example 4: Monthly Rent $1,000; 12-month lease; Concession Received: 1 month free in the third month of the lease.

Only the first month’s concession is excluded from the calculation. In this case no concession was given in the first month of the initial tenancy, so no concessions can be exempted.

The tenant paid 11 months of $1,000 = $11,000; Base Rent is $916.66 ($11,000/12 = $916,66) Example 5: Monthly Rent $1,000: 12-month lease: Concession Received: 25% off the first 3 months.

Only the first month’s concession is excluded from the calculation.

The tenant paid 3 months of $750 and 9 months of $1,000 = $11,250; Base Rent is $958.33 (1x$1,000, 2x$750, 9x$1,000=$11,500/12 = $958.33) Example 6: Monthly Rent $1,000; 12-month lease; Concession Received 25% off first 12 months.

Only the first month’s concession is excluded from the calculation.

The tenant paid 12 months of $750 = $9,000; Base Rent is $770.83 (1x$1,000, 11x$750 = $9,250/12 = $770.83)

Rent Stabilization Program, City of Mountain View

Rev. 2022.08.10 Page 3