Friday, May 19, 2017

Oakland's Rent-Adjustment Program and New Notice Requirements

Recently, a blog reader commented on my 2016 blog post concerning required rent-control notices in Oakland.  This reader’s comments were salient in that, since the passage of Measure JJ in the November 2016 election, the City of Oakland has made numerous changes to the municipal code, rent-control regulations, and to required notices. 

First, as it relates to required notices, under Oakland Municipal Code (O.M.C.) section 8.22.050, a owner of covered units must provide the following notices to tenants:
  •         Notice at Commencement of Tenancy (also called “RAP Notice”); and
  •          Change in Terms of Tenancy or Rent Increase.

Note that “covered units” is specifically referenced. What, then, is a covered unit?  A covered unit is “covered” by rent-control and is not exempt from the ordinance.  

Units that are exempt (or not covered) from rent-control are described in O.M.C. 8.22.030 and include duplexes or triplexes in which one of the units is owner-occupied. In addition, “Dwelling units which were newly constructed and received a certificate of occupancy on or after December 1, 1995” are also exempt. This date was recently extended from January 1, 1983. There are other exemptions which can be explored by examining the municipal code.

For covered units, there are penalties if a landlord fails to provide the notices mentioned above and includes (but is not limited to) forfeiture of a rent increase for 6-months if the rent increase is challenged by the tenant. Moreover, as of 9/21/16, notices are available in English, Spanish, and Chinese; which language is used depends upon the language in which the lease was negotiated.  All notices can be found here.

One notice that is universally required is the Tenant Protection Ordinance (TPO) which was enacted in in 2014.  For covered units, the “Notice at Commencement of Tenancy” includes the required reference to the TPO.  For non-covered units, a “Notice to Oakland of New Tenant Protection Ordinance” is required to be posted in an interior common area of the rental building or, if no common area, directly to the tenants. The remedy for violation of the TPO rests with the courts.
  • ·       Common Area Notice to Tenants of the Tenant Protection Ordinance.

Note, that there are exemptions to the TPO which are different from the exemptions under the Rent Adjustment Program.  See: O.M.C. 8.22.630.

       “The TPO shall apply to all Rental Units where there is a Rental Agreement between           an Owner and one or more Tenants, unless exempted herein. The application of the           TPO includes units that may not be covered under the Rent Adjustment Ordinance             (O.M.C. 8.22.100, et seq.) or the Just Cause for Eviction Ordinance 
        (O.M.C. 8.22.300  et seq.)"  

Look to the code enacted on April 10, 2017. 

And, there is a new notice required. This notice is:

 ·         Notice of Changes to the Rent Adjustment Program.

Numerous changes to the Oakland Rent Adjustment Program and TPO have been made in response to voter’s approval of Measure JJ, the Ghostship fire, public commentary, and advocacy groups. Net, net, these changes further strengthen the RAP program for tenants and afford them more protections. Net, net, I'm proud to be a citizen of Oakland.

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