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For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CONTROLLED RENTAL UNITS. All residential rental units in the City of Baldwin Park built prior to January 1, 1995, except those units exempt under one or more of the following provisions listed herein:
(1) Residential real property that is alienable separate from the title to another dwelling;
(2) Mobile homes established before 1990 regardless of ownership except mobile homes with long term leases of 12 months or more;
(3) Single structures with two separate dwelling units in which owner occupies one of the units;
(4) Rental units in hotels, motels, inns, tourist homes and rooming and boarding houses which are rented primarily to transient guests for a period of less than 30 days;
(5) Rental units in any hospital, convent, monastery, extended medical care facility, asylum, non-profit home for the aged, or dormitory owned and operated by an institution of higher education;
(6) Rental units which a government unit, agency or authority owns, operates, manages, or in which governmentally subsidized tenants reside only if applicable federal or state law or administrative regulation specially exempt such units from municipal rent control. This includes “affordable housing” units and Section 8 housing;
(7) Rental units and dwellings constructed after the adoption of this chapter; this exemption does not apply to units created as a result of conversion; and
(8) Where a unit is actually used for purposes of providing, on a non-profit basis, child care or other residential social services in accordance with applicable laws. This exemption shall expire when the use upon which exemption is based ceases. This exemption shall only apply to units as they become vacant and shall only operate to allow the specified use without the necessity of obtaining a removal permit under this chapter. This exemption shall not be construed to authorize the eviction of any tenant nor to authorize the charging of rent in excess of that permitted in this chapter. The city may adopt regulations to determine whether a unit qualifies for an exemption under this section.
HOUSING SERVICE. Housing services include, but are not limited to repairs, maintenance, painting, providing light, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, refuse removal, furnishings, telephone, parking, the right to have a specified number of occupants, and any other benefit, privilege or facility connected with the use or occupancy of any rental unit. Services to a rental unit shall include a proportionate part of services provided to common facilities of the building in which the rental unit is contained.
LANDLORD. An owner, lessor, sublessor or any other person entitled to receive rent for the use and occupancy of any rental unit, or an agent, representative or successor of any of the foregoing.
PROPERTY. All rental units on a parcel or lot or contiguous parcels or contiguous lots under common ownership.
RECOGNIZED TENANT ORGANIZATION. Any group of tenants residing in controlled rental units in the same building or in different buildings operated by the same management company, agent or landlord, who requests to be so designated.
RENT. All periodic payments and all non-monetary consideration including but not limited to, the fair market value of goods or services rendered to or for the benefit of the landlord under an agreement concerning the use or occupancy of a rental unit and premises including all payment and consideration demanded or paid for parking, pets, furniture, subletting and security deposits for damages and cleaning.
RENT CEILING. Rent ceiling refers to the limit on the maximum allowable rent which a landlord may charge on any controlled rental unit.
RENTAL HOUSING AGREEMENT. An agreement, oral, written or implied, between a landlord and tenant for use or occupancy of a rental unit and for housing services.
RENTAL UNITS. Any building, structure, or part thereof, or land appurtenant thereto, or any other rental property rented or offered for rent for living or dwelling house units, together with all housing services connected with use or occupancy of such property such as common areas and recreational facilities held out for use by the tenant.
SINGLE-FAMILY HOME. A property that has been developed with only one one-family dwelling and any lawful accessory dwelling structures. For example, if a lot has a single-family home on it and a lawful accessory unit on the property, the entire property including the accessory dwelling unit would be considered a “single-family home” for purposes of this chapter.
TENANT. A tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a rental housing agreement to the use or occupancy of any rental unit.
(Ord. 1447, passed 10-21-20; Am. Ord. 1466, passed 12-1-21; Am. Ord. 1501, passed 4-5-23)
If any portion of this chapter is declared invalid or unenforceable by decision of a court of competent jurisdiction or rendered invalid or unenforceable by state or federal legislation, the City Council shall have authority to enact replacement regulations consistent with the intent and purpose of the invalidated provision and applicable law. Such replacement regulations shall supersede invalidated or unenforceable provisions of this chapter to the extent necessary to resolve any inconsistency. The subject matter of such replacement regulations shall be limited to rent control matters as enumerated in this chapter.
(Ord. 1447, passed 10-21-20; Am. Ord. 1501, passed 4-5-23)
In addition to complying with this chapter, landlord must be in compliance with all California state laws regarding rent stabilization including, but not limited to, the Costa-Hawkin’s Rental Housing Act. If this chapter conflicts with state law, state law shall prevail.
(Ord. 1447, passed 10-21-20; Am. Ord. 1501, passed 4-5-23)
It shall be unlawful for any landlord to demand, accept or retain more than the maximum rent permitted pursuant to this section and this chapter.
(A) Immediate temporary rent freeze. Rents shall be frozen at their current rate and shall not be increased during the 120-day period following the date of adoption of this chapter.
(B) Establishment of base rent ceiling. Beginning 120 days after the adoption of this chapter, no landlord shall charge rent for any controlled rental units in an amount greater than the rent in effect on the date one year prior to the adoption of this chapter. The rent in effect on that date is the “base rent ceiling.” If there was no rent in effect on the date one year prior to the adoption of this chapter, the base rent ceiling shall be the rent that was charged on the first date that rent was charged subsequent to the date one year prior to the adopt of this chapter. For tenancies commencing on or after the adoption of this chapter, which qualify for a vacancy rent increase pursuant to state law, the base rent ceiling is the initial rental rate in effect on the date the tenancy commences. As used in this division, the term “initial rental rate” means only the amount of rent actually paid by the tenant for the initial term of the tenancy. The base rent ceiling is the reference point from which the rent ceiling may be adjusted upward, if applicable.
(C) Rent increases. Landlord may increase rent according to the United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers or CPI-U. The maximum increase in rent based on the CPI-U is 5% per 12-month period. Thus, the rent for any controlled unit shall not be increased more than 5% during any 12-month period. An increase made pursuant to this division shall establish a new “base rent ceiling” for the affected unit.
(D) Increases based on consumer price index of less than 1%. If the Consumer Price Index (CPI-U) is any number less than 1%, then the landlord may increase rent up to 1%.
(E) Posting. The landlord has a duty to post the maximum allowable rent prior to any increase. As soon as the landlord is aware of the maximum allowable rent, the landlord shall post it for each unit in a prominent place in or about the affected controlled units. The city may require that other information it deems relevant also be posted.
(F) Penalties for failure to post. The city shall notify a landlord of failure to post a notice in accordance with the provisions of this chapter. If a landlord fails to post the notice within seven days of city’s notification, the landlord shall pay a fine of $250 for each day after the seventh day that the landlord fails to post the notice.
(Ord. 1447, passed 10-21-20; Am. Ord. 1466, passed 12-1-21; Am. Ord. 1501, passed 4-5-23)
(A) Petitions. Upon receipt of a petition by a landlord, the rent of individual controlled rental units may be adjusted upward above the maximum allowable in accordance with the procedures set forth in this section. The petition shall be on the form provided by the city and shall include a declaration by the landlord that the unit meets all requirements of this chapter and is in compliance with all state laws on rent control. Notwithstanding any other provisions of this chapter, the city or hearing examiner may refuse to hold a hearing and/or grant a rent ceiling adjustment if an individual hearing has been held and decision made with regard to the maximum rent within the previous 12 months.
(B) Hearing procedure. The city shall enact rules and regulations governing hearings and appeals of individual adjustment of ceilings on allowable rents. No hearings may be held for landlord/tenant disputes. That includes but is not limited to, disputes about habitability, disputes about whether there was a payment of rent, disputes regarding whether the tenant has violated his or her lease and any other disputes that do not directly involve the provisions of this chapter.
(C) Hearing examiner. A hearing examiner may be the CEO or his or her designee. The hearing officer shall conduct a hearing to act upon the petition for individual adjustment of ceilings on allowable rents and shall have the power to administer oaths and affirmations.
(D) Notice. The city shall notify the tenant of the receipt of such a petition and a copy thereof.
(E) Time of hearing. The hearing officer shall notify all parties, as to the time, date and place of the hearing.
(F) Records. The hearing examiner may require either party to a rent adjustment hearing to provide it with any books, records and papers deemed pertinent in addition to that information contained in registration statements. The hearing examiner shall conduct a current building inspection and/or request the city to conduct a current building inspection if the hearing examiner finds good cause to believe the city's current information does not reflect the current condition of the controlled rental unit. The tenant may request the hearing examiner to order such an inspection prior to the date of the hearing. All documents required under this section shall be made available to the parties involved prior to the hearing at the office of the city. In cases where information filed in a petition for rent ceiling adjustment or in additional submissions filed at the request of the hearing examiner is inadequate or false, no action shall be taken on said petition until the deficiency is remedied.
(G) Open hearings. All rent ceiling adjustment hearings shall be open to the public.
(H) Right of assistance. All parties to a hearing may have assistance in presenting evidence and developing their position from attorneys, legal workers, recognized tenant organization representatives or any other persons designated by said parties.
(I) Hearing record. The city shall make available for inspection and copying by any person an official record which shall constitute the exclusive record for decision on the issues at the hearing. The record of the hearing, or any part of one, shall be obtainable for the cost of copying. The record of the hearing shall include: all exhibits, papers and documents required to be filed or accepted into evidence during the proceedings; a list of participants present; a summary of all testimony accepted in the proceedings; a statement of all materials officially noticed; all recommended decisions; orders and/or rulings; all final decisions, orders and/or rulings, and the reasons for each final decision, order and/or ruling. Any party may have the proceeding tape recorded or otherwise transcribed at his or her own expense.
(J) Quantum of proof and notice of decision. No individual adjustment shall be granted unless supported by the preponderance of the evidence submitted at the hearing. All parties to a hearing shall be sent a notice of the decision and a copy of the findings of fact and law upon which said decision is based. At the same time, parties to the proceeding shall also be notified of their right to any appeal allowed by the city and/or to judicial review of the decision pursuant to this section.
(K) Consolidation. All landlord petitions pertaining to tenants in the same building will be consolidated for hearing, and all petitions filed by tenants occupying the same building shall be consolidated for hearing unless there is a showing of good cause not to consolidate such petitions.
(L) Appeal. Any person aggrieved by the decision of the hearing examiner may appeal to the City Council. On appeal, the City Council shall affirm, reverse or modify the decision of the hearing examiner. The City Council may conduct a de novo hearing or may act on the basis of the record before the hearing examiner without holding a hearing.
(M) Finality of decision. The decision of the hearing examiner or his or her designee shall be the final decision of the city in the event of no appeal to the City Council. The decision of the hearing examiner or his or her designee shall not be stayed pending appeal; however, in the event that the city on appeal reverses or modifies the decision of the hearing examiner, the tenant, in the case of an upward adjustment in rent, shall be ordered to make retroactive payments to restore the parties to the position they would have occupied had the hearing examiner's decision been the same as that of the hearing examiner or his designee.
(N) Time for decision. The rules and regulations adopted by the city shall provide for final action on any individual rent adjustment petition within 120 days, following the date of filing of the individual rent adjustment petition.
(O) Hearing examiner hearing required. All hearings on an individual petition for rent adjustment must first be heard by a hearing examiner.
(Ord. 1447, passed 10-21-20; Am. Ord. 1501, passed 4-5-23)
If the landlord is operating in a negative cash flow due to existing rents and allowable costs/expenses, then upon petition to the City Council, the City Council may make a determination on the “fair and reasonable rent” based on a request from the landlord. The request must be made in writing, describing all facts to the negative cash flow, provide any documents to be considered by the City Council, and be on an approved form the city will provide. The allowable costs and expenses will be decided by the City Council in its sole discretion. The City Council’s decision will be final. For a petition under this section, the hearing process and procedures under § 117.05 will apply.
(Ord. 1447, passed 10-21-20; Am. Ord. 1501, passed 4-5-23)
No landlord shall increase rent under this chapter if the landlord:
(A) Has failed to comply with any provisions of this chapter and/or regulations issued thereunder by the city, including the provisions requiring the payment of registration fees and registration penalties.
(B) Has failed to comply substantially with any applicable state or local housing, health or safety law. No landlord shall increase rent unless the notice increasing rent contains a statement in substantially the following form: "The undersigned (landlord) certifies that this unit and common areas are not subject to any uncorrected citation or notices of violation of any state or local housing health, or safety laws issued by any government official or agency." If a landlord fails to comply with this division, the tenant may refuse to pay the improperly noticed increase, may seek administrative or civil remedies under this chapter, and may raise the landlord's noncompliance as an affirmative defense in any resulting unlawful detainer action.
(Ord. 1447, passed 10-21-20; Am. Ord. 1501, passed 4-5-23)
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