Sacramento Law and Legislation Committee Meeting - July 20, 2021

The Sacramento City Law and Legislation Committee met via teleconference on Tuesday, July 20, 2021, from 1:01 p.m. to 1:51 p.m. All four members were present: Jay Schenirer (Chair, District 5), Jeff Harris (Vice Chair, District 3), Katie Valenzuela (District 4), and Eric Guerra (District 6). The committee unanimously approved the consent calendar and received an update on the Tenant Protection Program, with public testimony and discussion focusing on proposed changes to tenant protections.

Consent Calendar

• Item 1: Law and Legislation Log – Passed a motion approving the log. The motion was moved by Member Guerra and seconded by Member Harris, with a unanimous vote.
• Item 2: Legislative Advocacy Correspondence – Received and filed.
• During discussion, Member Harris asked about the inclusion of digital kiosk coordinates in the log; staff confirmed it was included.

Public Comments & Testimony

Public comment was heard on Item 03 (Tenant Protection Program Update). Eight speakers provided testimony:

• Johanna (Sacramento Tenants Union): Described being evicted as a result of program staff's collaboration with her landlord. She expressed concerns about administrative procedures, including a requirement that tenants file complaints within seven days of an illegal eviction notice, a contradiction with California Civil Code Section 1945 regarding acceptance of rent, and the one-year residency requirement. She asked the committee to investigate these issues.
• Erika (Sacramento Tenants Union): Shared similar concerns, noting that the group had analyzed over 700 emails. She voiced support for reducing the one-year residency requirement to 30 days and highlighted the conflict with Civil Code 1945. She also asked about criteria for hearing eligibility.
• Elliot Stevenson (Sacramento Tenants Union): Argued that the one-year residency requirement creates exploitable loopholes, allowing landlords to terminate tenancies within the first year for almost any reason. He supported a 30-day or zero-day just cause requirement and described a cycle of evictions before the one-year mark to raise rents.
• Monica Madrid (ACCE, Alliance of Californians for Community Empowerment): Supported 30-day just cause protections. She reported that a tenant in Cedar Ridge Apartments (District 8) was being asked to pay rent by September 1 instead of September 30 and faced a 10% rent increase rather than the 9% maximum. She noted many tenants were unaware of the program.
• Brian (renter in midtown): Asked for clarity on how vacancy affects rent increases, questioning whether the cap applies to the unit or individual tenants. He also raised concerns about the timing of rent check cashing and late fees.
• Michael Andrews: Described his landlord's attempt to evict him using a "year minus a day" loophole, including a fake notice. His case remains unresolved, and he credited assistance from the Sacramento Tenants Union and a councilmember's office. He urged the committee to shorten the one-year period.
• Cesar Aguirre: A renter who had lived in four Sacramento rentals, none for over a year, highlighting the vulnerability of tenants without protections and the incentive for landlords to evict to raise rents. Supported a shorter protection period.
• Kristen Lopez (ACCE): Begged the committee to protect renters, stating that people are becoming homeless and that tenants often learn about laws too late. She criticized the lack of notice about the program and argued that landlords are being prioritized over human beings.

Staff response: Tina Lee-Vogt, Program Manager, stated this was the first time she had heard the concerns about administrative procedures and invited advocacy groups to share feedback. She noted that Michael Andrews is the tenant for whom the city issued two administrative penalties against his landlord, which were upheld. She also said Sacramento Self-Help Housing has made outreach efforts to tenant groups.

Discussion Items

• Item 3: Tenant Protection Program Update – Presented by Tina Lee-Vogt, Program Manager, Community Development Department. Key highlights included:
  • Rental registry fees: Approximately 8,000 registration packets were sent in April 2021, representing about 40,000 properties; subsequently, 6,600 invoices were mailed.
  • Rent increase limit: The maximum annual rent increase is set at 5% plus the Consumer Price Index (CPI). In April 2021, the CPI was calculated at 4%, resulting in a maximum rent increase of 9% effective July 1, 2021. This applies to all tenants, cannot exceed once per 12 months, and tenants cannot agree to a higher increase.
  • Enforcement: The program has transitioned from warning letters to issuing Notices of Violation (NOVs). Seven NOVs have been issued, and most were remedied. One landlord received two administrative penalties for termination of tenancy.
  • Contacts and outreach: Staff handled approximately 1,500 tenant calls, 885 landlord calls, 848 tenant emails, and 830 landlord emails in the past fiscal year. Sacramento Self-Help Housing logged about 1,000 complaints in calendar year 2020 and 688 complaints through May 2021. Three webinars have been conducted (landlord-focused, tenant-focused, and an evening session) and are posted on the city website.
  • State tenant protections: City moratorium expired in September 2020; state protections are currently set to expire at the end of September 2021.

Committee discussion:

• Member Valenzuela commended staff on the registry work and suggested the program update become a standing item every six months. She proposed extending just cause protections and relocation assistance to tenants after 30 days of residency instead of one year, and requested an ordinance amendment.
• Member Harris questioned the ratio of 688 complaints to seven NOVs and two administrative penalties. Staff explained many cases are resolved through communication and education. He also asked about the rationale for the one-year requirement; staff and ordinance drafter Cheryl Patterson explained it was based on typical one-year leases and consistency with AB 1482 and other rent control ordinances.
• Member Guerra suggested using ARP funding and other resources to increase outreach, particularly for language access. He also requested information on relocation assistance, noting cities like Santa Rosa have emergency pools. He preferred a three-month follow-up before making significant changes.
• Chair Schenirer proposed a three-month return for more data on complaints, evictions occurring before one year, six-month lease activity, relocation assistance resources, and Sacramento Self-Help Housing's capacity. He also suggested collaboration with advocacy groups and landlord associations.
• Member Valenzuela initially asked for the 30-day ordinance change to come back sooner, but consensus was to return in three months. She requested that the follow-up item be agendized to permit action at that time.

Key Outcomes

• The committee received and filed the Tenant Protection Program Update (Item 03).
• Directed staff to return in approximately three months with data on: types of complaints received, evictions issued within less than one year of tenancy, activity related to six-month leases, relocation assistance resources, and any additional needs of Sacramento Self-Help Housing.
• The three-month follow-up will be agendized to allow the committee to take action if warranted.
• No ordinance changes were made at this meeting; the one-year residency requirement remains in effect pending further data and discussion.
• The committee also emphasized collaboration with tenant advocacy groups and landlord associations in gathering information.