Once again, at the “eleventh hour” on August 23rd, the Santa Monica City Council placed further impediments on rental housing providers’ ability to collect the full, legally permissible amount of rent increases under the 2022 General Adjustment of 6% or $140 per month, whichever is less, by adopting a temporary eviction moratorium – effective immediately.
Prior to the meeting, the Association expressed strong opposition to the adoption of the urgency ordinance, both to the Council’s bypassing of the City Charter, and the implications of this eviction moratorium on Santa Monica’s responsible housing providers.
What You Need to Know
Summarized below are the general eviction moratorium parameters, however, we encourage members with property in Santa Monica to review the full details of the ordinance and to consult with an attorney regarding questions about specific tenancies.
Who does the Eviction Moratorium apply to?
The eviction moratorium applies to renters residing in rent-controlled units who receive a rent increase of more than 3% above their rent in effect prior to September 1, 2022, during the period of September 1, 2022 through January 31, 2023.
** Rental housing providers who issued notices for rent increases of more than 3% due on or after September 1, 2022 may roll back the increase to 3% and will not be subject to the moratorium. We encourage members in those circumstances who wish to take such action to consult with an attorney.
What are the requirements?
If a renter residing in a rent-controlled unit receives a rent increase that is more than 3%, as described above, for rent due between September 1, 2022 and January 31, 2023 and the renter notifies the owner within 30 days after the rent is due and self-certifies (no documentation required from renter) their inability to pay the rent due to COVID-19 financial distress, as defined in the ordinance, the renter cannot be evicted during the period of September 1, 2022 through September 1, 2023.
It is important to note that once the above circumstances occur, the renter can defer not only the rent increase amount but the full amount of rent due, meaning renters can withhold payment of any rent for five months between September 1, 2022 and January 31, 2023.
When is the Renter Required to Repay Deferred Rent Owed?
The renter has until September 1, 2023 to repay any deferred rent owed that was incurred during the period between September 1, 2022 and January 31, 2023. Failure to pay could result in eviction at that time.
The City Council’s rationale for this ordinance is to prevent evictions due to allowable rent increases, over 3%, pending the November 2022 General Election and the potential voter approval of the ballot measure that was approved by the City Council at the end of July. This ballot measure, if approved by the voters this November, would drastically reduce the 2022 general adjustment for the period of February 1, 2023 through August 31, 2023 from 6% to 0.8%, or average not to exceed 3% and permanently reduce annual allowable rent increases to a maximum of 3% or $70 per month, whichever is less.
The City’s temporary eviction moratorium is in addition to the Los Angeles County eviction moratorium currently in effect through the end of 2022, which also applies to Santa Monica renters, and prohibits evictions based on non-payment of rent for renters financially impacted due to COVID-19 with household incomes at 80 percent Area Median Income (AMI) or below.
Rent Control Adjustment Relief Program
On a related matter, the City is also establishing a Rent Control Adjustment Relief Program. $750,000 in City funds are being allocated to assist eligible City renters obtain one-time assistance to cover their 2022 rent increase up to $140 per month through January 2023. The program application period will open at 8:00 a.m. on August 29th and the application deadline is September 19th at 6:00 p.m. All payments will be made directly to the property owner/manager.
Original source can be found here.
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