Santa Barbara City Council to Study the Effect of State’s New Tenant Laws

Landlords fear financial repercussions of tenant relocation assistance; tenants fear eviction

The Santa Barbara City Council voted Tuesday night to conduct a study looking at the array of local impacts from a new state law that created a form of rent control, tenant relocation assistance for displaced tenants and the definition of mass evictions.



The vote was 7-0. The city is trying to grapple with AB 1482, which became law Jan. 1.

Councilwoman Meagan Harmon said AB 1482 is really a response to the "destructive forces of mass eviction that threatens the stability of the family unit." She said evictions undermine neighborhoods, make it difficult for people to gain financial stability and disproportionately affect women of color, elderly and people with disabilities.

"The consequences are felt by our whole community and they are great, and I think we have a collective responsibility to deal with those consequences," Councilwoman Meagan Harmon said.

City Attorney Ariel Calonne said he will return to the council with an analysis in 30 to 60 days.

The talk comes at a time of increasing housing challenges in Santa Barbara. Santa Barbara is made up of about 60 percent renters, with the average rent in Santa Barbara for a two-bedroom at $2,685 per month, Calonne said. Santa Barbara's housing stock is mostly old; about 92 percent of the housing was built before 1990.

AB 1482 made it illegal for residential landlords to raise rent more than 5 percent, plus the local rate of inflation, in one year. It also states that landlords would have to pay the equivalent of one month's rent to help tenant relocate in either fault or no-fault evictions. The city's study will allow for time to analyze the impacts on both tenants and property owners. Some property owners said Tuesday night that they only own a few units, that profit margins are thin, and that the new state laws could force them to sell their properties to large corporations.



"With the state's decision to impose a one-month relocation, there's a certain acceptance of the economic impacts of eviction, and given how much we all believe in the unique character of our city, it is incumbent on us to really think about what is going to work best here," Harmon said.

Frank Rodriguez , representing the Latino advocacy group CAUSE , said he was glad the city was talking about the housing crisis that is becoming "more and more real."

"We know this situation with the housing crisis isn't something that is new, it's been building up," Rodriguez said. "We know with the housing market here we need protections for our tenants."

The city plans to study higher relocation assistance amounts and what constitutes a “mass eviction." The financial analysis will study relocation costs in this region. The city also wants to look at creating rules against evictions for people who are considered "special needs."

Staci Caplan, president of the Santa Barbara Association of Realtors, urged the city to let AB 1482 play out before trying to implement changes that would make it even more difficult financially for property owners.

"The sweeping regulations put in place by the state will greatly impact our rental market and any such additional regulations should be carefully measured with data," Caplan said. "We urge you to first measure the effects of this new legislation."

She said further restrictions or financial requirements on landlords could end up unintentionally harming people who need housing. Local landlords who own just a few units in town typically work with their tenants to provide below-market rents and flexibility with tenancy. If costs and regulations are too high, Caplan said, it could mean these owners will sell to owner-occupants.

"If you create more regulations . . . it could be the breaking point for many of these property owners," Caplan added.

— Noozhawk staff writer Joshua Molina can be reached at .(JavaScript must be enabled to view this email address). Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.