Upon withdrawal of one or more residential hotel units from rent or lease, the owner shall provide a relocation assistance plan that includes a description of the relocation benefits provided in this section.
A. Eligible Tenant. Relocation benefits shall be paid to the current occupant of each unit withdrawn if the occupant occupied the withdrawn unit, or another unit within the same building, for thirty (30) consecutive days or more immediately prior to the notice to tenants (Section 18.20.080). If the current occupant is not eligible, or if the unit is vacant, relocation benefits shall be paid to the most recent past eligible tenant of the unit if:
1. Such tenant occupied the unit within one year prior to the withdrawal, and
2. The tenancy of such tenant was terminated without just cause or the tenant voluntarily vacated the premises within sixty (60) days after receiving a notice of rent increase.
No relocation benefits shall be payable to any person who becomes a tenant of a unit after a notice to tenants required by Section 18.20.080 of this chapter is given to that unit, and if the owner personally serves a copy of the notice on the tenant prior to occupancy. The owner shall obtain written acknowledgement of service of the notice on the tenant.
B. Relocation Payments.
1. Amount of Payment. The owner shall set aside a cash amount for relocation benefits to each eligible tenant in the amount of two thousand four hundred dollars ($2,400.00) per person, or four thousand dollars ($4,000.00) for two or more persons occupying the same room, to be divided proportionately among and between the occupants.
The amount of relocation benefits payable shall be adjusted annually by the director by the annual average percentage increase in the Consumer Price Index for All Urban Consumers, Western Region, all items, as published by the U.S. Bureau of Labor Statistics.
2. Purpose of Payment. Of the relocation benefit amount, the owner shall pay up to eighty (80) percent of the payment directly to the landlord of the comparable unit for the first and last month's rent and security deposit for the comparable unit accepted by the eligible tenant or tenants. The remaining twenty (20) percent of the relocation benefit amount shall be paid directly to the eligible tenant or tenants occupying one room for moving expenses and miscellaneous expenses. If less than eighty (80) percent of the relocation benefit amount is needed for the first and last months' rent and security deposit for the comparable unit, the balance shall be paid to the eligible tenant or tenants.
3. Timing of Payment. Twenty (20) percent of the relocation benefit amount shall be paid to current eligible tenants at least thirty (30) days before the tenants are required to vacate the units. If there is no current tenant, payment shall be made to an eligible past tenant within thirty (30) days after the issuance of the conversion certificate.
4. Payment to Relocation Assistance Fund. In the event that there is a tenant eligible for relocation benefits who cannot be located by the owner, a sum equal to eighty (80) percent of the relocation benefits shall be deposited with the Sacramento housing and redevelopment agency. If not claimed by the eligible tenant within one year after deposit, the funds shall be deposited in the city housing trust fund.
5. Tenant Rejection of Comparable Unit. If an eligible tenant rejects the owner's offers of comparable units, the owner shall request the tenant to sign a statement verifying the rejection and if the tenant refuses, the owner shall document the rejection of the offers. An eligible tenant who rejects the offers of comparable units shall be directly paid the full relocation benefit amount within thirty (30) days after the issuance of the conversion certificate.
6. Adequate Guarantees. Issuance of a conversion certificate shall be conditional upon the provision of adequate guarantees for payment of all relocation benefits, such as the posting of an irrevocable letter of credit, performance bond, or comparable security.
C. Relocation Units. Any residential hotel owner issuing a notice to tenants in accordance with Section 18.20.080 must locate comparable units that are offered for rent to eligible tenants. The comparable units will be offered prior to the owner's submitting an application for a conversion certificate. That application shall include a list of units offered to each tenant, their addresses, and current rents.
1. Rejection of Comparable Units. Should a comparable unit be rejected by an eligible tenant, the residential hotel owner shall be obligated to locate a second comparable unit offered for rent to the eligible tenant. Should the second comparable unit be rejected by the eligible tenant, the residential hotel owner has no further obligation under this chapter with regard to the offering of comparable units.
2. Good Faith Effort. If the residential hotel owner has not offered comparable units to every eligible tenant in accordance with this subsection, the conversion certificate shall issue only upon a finding that the owner made substantial and reasonable good faith efforts to locate and offer the requisite comparable units. The burden shall be on the owner to demonstrate substantial and reasonable, good faith efforts, and the owner shall provide information to the director, as part of the application for conversion certificate, regarding the number of eligible tenants to whom comparable units were offered, with copies of lease proposals or other documentation evidencing offers to rent; the efforts made to locate comparable units, including the identity of, and contact information for, persons, firms and agencies contacted; such other information as the owner deems relevant to the issue of whether the owner has made substantial and reasonable good faith efforts. The director shall review the information and make a recommendation to the council on whether the owner has satisfied the good faith effort obligation.
D. Technical Relocation Assistance. At the residential hotel owner's request, the Sacramento housing and redevelopment agency shall provide a list of relocation services and real estate firms or housing organizations experienced in the affordable rental market. It will also provide a list of vacant units in properties owned by the housing authority and information on public housing applications. (Ord. 2006-056 § 1)