Berkeley Rent Stabilization Board

The mission of the Rent Stabilization Board is to regulate residential rent increases in the City of Berkeley and to protect against unwarranted rent increases and evictions and to provide a fair return to property owners. The Board works to ensure compliance with legal obligations relating to rental housing; and to advance the housing policies of the City with regard to low and fixed income persons, minorities, students, disabled, and the aged.

2016 Guide to Berkeley's Rent Stabilization Program

General Calendar

Registration

ANNUAL REGISTRATION FEE OF $213 PER UNIT IS DUE WEDNESDAY, JULY 1, 2015.

At a regularly-scheduled meeting held on May 11, 2015, following a public hearing held on May 4, 2015, the City of Berkeley Rent Stabilization Board adopted Resolution 15-01 setting the annual fiscal year 2015/16 registration fee at $213 per unit effective July 1, 2015. This is the first increase in the registration fee since 2009 and is less than the increase in inflation since that year. The Board also adopted Resolution 15-02 giving authorization to directly pass through to certain tenants a portion of 2015’s registration fee, not already included as a part of previous Annual General Adjustments, as a temporary general adjustment of rent ceilings, by up to $6 per month. Rent Board staff were also asked to develop a mechanism that allows low-income tenants (at 40% of Area Median Income) to be reimbursed for any pass-through.

Please contact the Rent Stabilization Board at 510-981-7368 (981-RENT) for more information.

Rent Increase

Announcements of the Annual General Adjustments

Annual General Adjustments (AGA) Approved by the Berkeley Rent Stabilization Board

AGAs for these years may not be implemented on any unit that had an initial rent established on or after January 1 of the previous year.

Good Cause Required for Eviction

The “good cause for eviction” sections of the Ordinance (B.M.C. section 13.76.130) apply to most rental units in Berkeley, including some units that are exempt from registration with the Board or from rent ceiling controls, such as: those constructed after 1980, single-family residences described in Regulation 508, units owned or leased by the Berkeley Housing Authority, and units rented to federal Section 8 participants.

“Good cause” is any one of the following:

wishes to occupy the rental unit as their principal residence and there is or was, for 90 days before the tenant was given notice to vacate, no vacant comparable unit available on any property owned by the landlord in Berkeley. (See additional conditions in the Owner move-in section below.)

the current tenant or subtenant.

Note: The sale of property, the expiration of a rental agreement, or a change in the federal Section 8 status

Some events that are not good cause:

Foreclosure. If a rental property in Berkeley is foreclosed upon, it rarely means that the tenant must move. Despite what lenders or new owners may say, Berkeley tenants are entitled to remain in the property unless there is good cause to evict. Foreclosure is not one of the good causes listed in the Rent Ordinance. Recently passed Federal and state laws provide greater tenant protections and address abuses by foreclosing lenders. Contact a Rent Board housing counselor for the latest information about rights of tenants in properties facing foreclosure or recently foreclosed upon.

Condo conversions. Tenants in properties that are converted to condominiums receive substantial protections under the City’s ordinance governing those conversions. (B.M.C. Chapter 21.28.) Most significantly, the good cause for eviction provisions of the Rent Ordinance will apply, so most tenants in converted properties will not be required to move. An owner planning to convert a rental unit to a condominium must notify the tenant of their rights to: 1) continue to rent the unit, even if converted, and 2) purchase the unit, if they wish.

Relocation Ordinance. Tenants who are given a notice to vacate so the landlord can perform substantial repairs are entitled to payments under the City’s Relocation Ordinance (B.M.C. Chapter 13.84) and have the right to re-occupy the rental unit once the repairs are completed. The owner must first obtain all necessary permits for the work. Rent Board mediation is provided if the landlord and tenant cannot agree on the need for relocation. The amount of payments depends on how long the repairs take.

Owner move-in. The Ordinance bans evictions for owner or relative move-in where either: (1) the tenant has lived on the property for five or more years and the landlord has a 10% or greater ownership interest in 5 or more residential units in Berkeley, or (2) the tenant is at least 60 years old or disabled, has lived on the property for 5 or more years, and the landlord has a 10% or greater ownership interest in 4 residential units in Berkeley. If all the landlord’s units are limited by the above, an eviction for the owner or relative to move in is permitted where: the landlord has owned the property for 5 years and is at least 60 years old or disabled, or the landlord’s relative is at least 60 years old or disabled.

The landlord must include, in the notice of termination, information about all Berkeley residential properties in which he or she has a 10% or greater ownership interest, and must always offer the tenant any unit that he or she owns in Berkeley that becomes available before the tenant vacates his or her unit.

The landlord must provide a $4,500 relocation payment to any low-income household with at least one tenant who has resided in the unit for one year or more. To be eligible for this payment, the tenant must, within 30 days of receiving the notice of termination of the tenancy, notify the landlord and the Rent Board in writing that he or she is claiming low-income tenant status for the household.

The landlord must give the terminated tenant the right to re-occupy the unit when the landlord or his or her relative moves out. Also, when the landlord or his or her relative moves out, the rent for the next tenant will be limited to the old rent ceiling plus AGAs.

Finally, if a landlord cancels a notice of termination or stops eviction proceedings for owner or relative move-in, and the tenant vacates within one year of the notice date, it is presumed that the tenancy terminated because of the notice, and the rent for the next tenancy will be limited to the old rent ceiling plus AGAs. (Regulation 1016.)

Ellis Act. This state law allows landlords to evict tenants in order to remove units from the rental housing market. (Government Code sections 7060-7060.7. A local ordinance, Berkeley Municipal Code Chapter 13.77, establishes specific procedures under the state law.) Generally, an owner must withdraw all units on a property to evict under the Ellis Act. Tenants must be given at least 120 days’ notice, and the notice period is one year for tenants who are disabled or 62 years of age or older. Tenants evicted under Ellis are entitled to $8,700 in relocation monies divided equally among all tenants in the unit, with an additional $5,000 to households whose tenancies began before January 1, 1999. Low-income, elderly and disabled tenants, and households with minor children are entitled to an additional $2,500. Displaced tenants may request the opportunity to re-occupy the unit, on substantially the same terms as during their former tenancy, if it is re-rented within ten years of the withdrawal date.

When a landlord sends a notice of intent to withdraw rental units from the market under the Ellis Act, the rents will be regulated for the next five years (even if the landlord later cancels the Ellis notice). During this time, the rent ceiling may be increased only as authorized by the Board, and none of the rents may be increased to market level following a vacancy.

Wrongful eviction. If a landlord evicts a tenant to perform repairs or demolish the property, and the repair or demolition is not begun within two months, or if the landlord’s claim was false or in bad faith, the tenant may sue to move back into the unit and be compensated for damages. If the tenant can prove the landlord's conduct was willful, the tenant can recover the greater of $750 or three times the actual damages. (B.M.C. section 13.76.150 B.)

Bad faith is presumed where a landlord evicts for owner or relative move-in, and the owner or relative does not move in within three months of the tenant’s vacancy, or does not occupy the unit as a principal residence for at least 36 continuous months. (B.M.C. section 13.76.130 A.9.g.) Under state law, a tenant who can show an owner’s fraudulent intent not to reside in the property for at least six months may receive additional compensation. (Civil Code section 1947.10.) If a unit that was withdrawn under the Ellis Act is re-rented within two years of the withdrawal date, displaced tenants may sue for damages resulting from their displacement. If the re-rental occurs more than two, but less than ten years from the withdrawal date, displaced tenants may sue for damages if the owner failed to offer them the chance to re-rent. (B.M.C. section 13.77.040.)

Subtenants/Roommates

If the lease says nothing about subletting, then the tenant may sublet. If the lease absolutely prohibits subletting, then the tenant may not sublet. (However, this prohibition cannot be used to deny the tenant permission to replace a roommate.) If the lease permits subletting with the landlord's consent, then the landlord must allow the tenant to sublet unless he or she has a reasonable objection to the proposed subtenant. The proposed tenant's financial responsibility or prior rental history are examples of reasonable grounds to withhold consent to sublet.

Security Deposit Interest

The sections of the Rent Stabilization Ordinance and the Regulations governing interest on security deposits (B.M.C. section 13.76.070; Regulations 701-706) apply to all units that are required to be registered. They also apply to some units that do not have to be registered with the Board: those constructed after 1980, single-family residences described in Regulation 508, units owned or leased by the Berkeley Housing Authority, and units rented to federal Section 8 participants.

Landlords hold security deposits for the tenant’s benefit. Each December, landlords must return interest accrued through October 31st of the year, through either a cash payment or a rent rebate.

For interest accrued after November 1, 2013, interest is calculated using the 12-month average of the average rates of interest offered on six-month certificates of deposit (CDs) by commercial banks located in Berkeley (“Berkeley rate”).

For interest accrued prior to November 1, 2013, landlords may choose either the Berkeley rate or the average yield rate for six-month CDs as reported by the Federal Reserve Board. (The Berkeley rate is generally lower than the Federal Reserve rate.) A landlord who chooses the Berkeley rate must furnish the tenant and the Rent Board the identity of the bank account on an approved form.

After the tenant has moved out, a landlord must pay the tenant the balance of any interest accrued at the average monthly rate from the prior November 1st to the departure date (along with the appropriate part of the security deposit).

The Rent Board publishes the annual interest rates, as well as each month’s applicable move-out interest rate, on its website. Security deposit calculators can also be found on the website.

A tenant who has not received a refund of security deposit interest by January 10 for any prior years may, after giving the landlord 15 days’ advance written notice of intent to do so, deduct the interest from rent. The tenant may deduct at the rate of 10 percent simple interest for the immediately preceding year, and at the Federal Reserve rate for any years before that. The landlord may instead refund the interest at the appropriate rates before the deduction is to be made. (Regulation 704.)

Landlords may not increase the amount of the security deposit for any tenant during the term of the tenancy, even if the rent ceiling increases during the term. (Regulation 705.) A “pet” exception applies when the landlord lets a tenant have a pet in the unit, when pets were previously forbidden. Nonetheless, the total deposit held still cannot exceed two times the monthly rent for an unfurnished unit and three times the rent for a furnished unit.

Contact

Phone:

(510) 981-7368 (981-RENT)

Fax: 510-981-4910

TDD: 510-981-6903

如需中文, 請聯絡鄭女士：電話 981-4928

Se Habla Español : (510) 981-4919

Mail or Visit:

2125 Milvia Street, Berkeley, CA 94704 (northeast corner of Milvia and Center Streets, downtown Berkeley)

Office Hours:

Monday, Tuesday, Thursday, Friday: 9 a.m. -- 4:45 p.m. Wednesday: 12 p.m. (noon) -- 6:30 p.m.

Email & Facebook:

rent@ci.berkeley.ca.us

E-mail for ALL nine Rent Board Commissioners may be sent to TheRentBoard@cityofberkeley.info

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History of the City of Berkeley Rent Stabilization Board and Program

In June 1980, Berkeley residents passed the City's comprehensive rent stabilization law, known as the Rent Stabilization and Eviction for Good Cause Ordinance. (Berkeley Municipal Code Chapter 13.76.) The Ordinance regulates most residential rents in Berkeley, provides tenants with increased protection against unwarranted evictions and is intended to maintain affordable housing and preserve community diversity.

The Rent Stabilization Board, composed of nine elected commissioners, enacts regulations, hears petition appeals and administers a program to implement the Ordinance. Rent Board staff provide information and counseling to landlords and tenants, calculate and certify individual rent ceilings, conduct administrative hearings and issue decisions on landlord and tenant rent adjustment petitions, collect registration fees, and maintain a database of registered rental units. Owners of rental property covered by the Ordinance are required to register their units with the Board by filing registration statements and paying annual registration fees, which cover the program's cost.

In 1995, the California legislature enacted the Costa-Hawkins Rental Housing Act, which suspends rent control following a qualifying vacancy and reinstates it for a new tenancy. (Civil Code section 1954.50, et seq.) For the transition period between January 1, 1996 and December 31, 1998, owners were allowed to set new rents within prescribed limits. Now, under full "vacancy decontrol," owners may set a market rent for most tenancies beginning on or after January 1, 1999. The rent charged a new tenant becomes the new rent ceiling. Owners must register new rents with the Rent Board and may increase these rents for a sitting tenant only by an annual general adjustment or an individual rent adjustment granted through the Board's petition process.

Rent Stabilization Board Elected Commissioners

James Chang

2018 [RSBChang@cityofberkeley.info]

Committees:

Asa Dodsworth

2016 [RSBDodsworth@cityofberkeley.info]

Committees:

Katherine Harr

2018 [RSBHarr@cityofberkeley.info]

Committees:

Judy J. Hunt

2016 [RSBHunt@cityofberkeley.info]

Committees:

Paola Laverde

2018 [RSBLaverde@cityofberkeley.info]

Committees:

John Selawsky

2018 [RSBSelawsky@cityofberkeley.info]

Committees:

Judy Shelton

2016 [RSBShelton@cityofberkeley.info]

Committees:

Alejandro Soto-Vigil

Vice-Chair 2016 [RSBSoto-Vigil@cityofberkeley.info]

Committees:

Jesse Townley

Chair 2018 [RSBTownley@cityofberkeley.info]

Committees:

Rent Stabilization Board Meeting Schedule

Rent Board Committee Meeting Schedule

Security Deposit Interest - Aug 02, 2016 6:5:26 PM