The City of Santa Cruz has enacted the Relocation Assistance for Displaced Tenants Ordinance, which requires landlords to pay relocation assistance to displaced tenants in certain circumstances.  This article summarizes the key components of the Ordinance. 

Covered Properties

The ordinance applies to all structures rented for residential purposes.  Accordingly, the ordinance applies to all residential rental properties within the City of Santa Cruz’s borders. 

Eligibility

Tenants are entitled to relocation assistance when they must vacate their unit because of a large rent increase or because the conditions in the unit render it unsafe or hazardous, or because the unit is illegal.  A large rent increase is one that is more than five percent in one year, or cumulatively more than seven percent in any two consecutive years. The seven percent increase over two consecutive years must be calculated to include the compounding effect of the amount added in year one. 

The ordinance does not define what conditions render a unit unsafe or hazardous, and it does not state who makes that determination.  Typically, the City will issue a notice of violation to the owner if such conditions exist.  However, because of the Ordinance’s silence on this issue, the landlord may also be allowed to make a habitability determination that require tenants to vacate the property. 

A unit is considered “illegal” when it does not have a Certificate of Occupancy issued by the City of Santa Cruz that deems the unit safe for human occupation.

Tenants that are required to vacate because of unsafe or hazardous conditions or because the unit is unpermitted but either are in default of their rent, refuse to vacate after the timely payment of relocation, or have caused or substantially contributed to the conditions at the unit, are not entitled to relocation assistance.

Landlords are also not required to pay relocation if the conditions at the unit are due to events beyond their control.  The ordinance does not define what events would fall under this exception.

Notification Requirement

Tenants must notify their landlords that they plan to vacate and accept relocation assistance within sixty calendar days of the effective date of the large rent increase. If a tenant does not notify their landlord by that time, they are no longer eligible for a relocation payment and are deemed to have accepted the rent increase.

Amount of Relocation Assistance

If a tenant must vacate due to a large rent increase, the landlord must pay relocation assistance equal to two months of the tenant’s rent, not including the increase.

Tenants who are required to leave their unit because of uninhabitable living conditions or because it is an unpermitted unit, are entitled to a payment of three months’ fair market value rent for a unit of comparable size or three months of the tenant’s actual rent at the time of relocation, whichever is greater.  The fair market value is determined by the Federal Department of Housing and Urban Development’s fair market rent schedule. If a tenant is required to vacate with less than a thirty days’ notice, their relocation payment shall also include the immediate payment of one additional month’s fair market value rent for a unit of comparable size, or the tenant may accept alternate housing offered by the landlord for thirty days after the tenant vacates. 

Deadlines for Relocation Assistance Payments

Each tenant who must leave their unit due to unsafe or hazardous conditions, or because the unit is unpermitted, must be paid their relocation assistance within one week of any notice to vacate, notice of eviction, or order requiring tenant to vacate, or before the tenant actually vacates, whichever comes first. Tenants that vacate due to a large rent increase must be paid their relocation assistance within twenty-one calendar days after the tenant gives the owner notice of their intent to vacate. 

Right To Re-Occupy

A tenant who is displaced from a unit due to the uninhabitable conditions or because the unit is unpermitted has the right to reoccupy the unit once it is repaired and is fit for occupation. Once a unit is ready to reoccupy, the landlord must notify the tenant in writing by certified mail.  If the landlord cannot locate the tenant after two attempts over two weeks, the tenant’s right to reoccupy is forfeited. 

 Please contact Lynx Legal with any questions regarding the above, and for all your eviction needs.  We can be reached at 888-441-2355 or [email protected].  You can also schedule a telephonic consultation on our website.  Our experienced professionals are standing by to answer any questions or complete the intake if you are ready to start a case.