Oakland revamps its ordinances, ushers in sweeping new tenant protections
Fearing displacement of its residents and clamping down what it has said to be underhanded tactics designed to harass tenants, the Oakland City Council recently voted on the final passage of sweeping changes to the city's Tenant Protection Ordinance, Residential Rent Adjustment Program, and Just Cause for Eviction ordinance. We go line-by-line on the new rules, peppered with some of our insights, here.
Changes to the Residential Rent Adjustment Program
Oakland landlords were once allowed to raise the rent a maximum of 10% in a given year, but the Tenant Protection Act of 2019 (AB-1482) came up with its own rent increase formula of 5% plus the rate of inflation, or 10%, whichever is a lesser amount.
The City Council modernized its maximum allowable rent increase to comply with state law. Barring an epidemic of inflation, the rent increase cap should work out to be under 10%. The California Apartment Association has an excellent tool to calculate maximum rent increases, but you will have to use your CAA credentials or log in as a guest in order to use its nifty calculator.
We hasten to say that in certain jurisdictions that have more restrictive rules relating to rent increases, you are bound to follow these local ordinances.
Interestingly, the City Council allows rent increases of up to 5% for each additional occupant over the “base occupancy level.” To clarify this term, we have to put a finger on dates.
For units that had an initial rent established before June 16, 2020, the “base occupancy level” is defined as the greater of the number of tenants occupying the covered unit as a principal residence as of June 16, 2020 with the knowledge of the tenant inhabiting the unit, or for units with initial rent established on or after June 17, 2020, the “base occupancy level” means the number of tenants allowed by the lease agreement entered into at the beginning of the current tenancy.
These hybrid rent increases are banned when the additional occupant is a close family member.
A word about rent increases
In our last webinar on Landlording on the Other Side of COVID, we said that the optics of rent increases are not good and advised you from holding off on rent hikes. Indeed, you might even want to entertain a rent reduction, rent delay or rent waiver, but this is tricky stuff best journeyed with an attorney.
Changes to the Just Cause for Eviction Ordinance
There has been some debate surrounding the city’s “one for one” roommate replacement proposal. Laura Lane, of the city attorney’s office, has explained that tenants should have the right to find another roommate if one moves out so those remaining tenants aren’t stuck with the full rent. Read the story here →
The City Council heard the pains of tenants in a roommate situation and codified protections. Landlords cannot evict because additional occupants are welcomed into the unit if the landlord unreasonably refused the tenant’s written request to add an additional occupant. Exactly what is unreasonable should be determined on a case-by-case basis and we can certainly assist in that regard.
Hear a real account of one roommate left holding the bag »
Bornstein Law has always been a stickler when it comes to documenting communication with tenants and responding to tenant requests in a timely manner, and Oakland has put an exclamation point on this. If the landlord does not respond to a tenant’s written request to swap out a roommate within 14 days, the city says that the presence of a new face in the unit cannot be used as grounds to evict. In every season and especially now, we strongly recommend close communication and a ledger documenting the communication.
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2 persons in a studio unit
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3 persons in a one-bedroom unit
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4 persons in a two-bedroom unit
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6 persons in a three-bedroom unit
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8 persons in a four-bedroom unit
Changes to the Tenant Protection Ordinance
The Oakland City Council has limited late fees to 3% and those of you who are dealing with properties built from the ground up within the past 15 years, you need to know that the Tenant Protection Ordinance will apply - you will no longer enjoy the exemption. Properties owned by nonprofits are also newly subject to the ordinance.
We won’t dwell much on landlord harassment and violation of tenant privacy rights, except to say that that Oakland’s City Attorney has much broader powers to file a civil lawsuit against a landlord who engages in egregious conduct like illegal lockouts, shutting off utilities, and the like.
The consequences are ratcheted up, as they should be, for the most vulnerable tenants like the elderly, catastrophically ill, or disabled persons. We have always admonished landlords to refrain from these “self-help” eviction measures, but please be aware that any whiff of harassment can lead to dire financial consequences.
Parting thoughts
Fortunately, the informed advice from Bornstein Law can help you understand the lay of the land, cauterize risk, and develop a strategy that optimizes your real estate investment. It is our privilege to provide this “air support” in ordinary times, but we hope our guidance will be especially helpful to avoid pitfalls in the most extraordinary of times.