Chapter 21.03
RELOCATION ASSISTANCE FOR DISPLACED TENANTS*
* Editor’s Note: Prior ordinances codified herein include portions of Ordinance Nos. 88-49, 88-47 and 86-41.
Sections:
21.03.030 Relocation assistance requirements.
21.03.050 Rent increases during repairs.
21.03.060 Violation and penalty.
21.03.070 Private right of action.
21.03.010 INTENT AND PURPOSE.
The city council finds that tenants who are required to vacate structures rented for residential purposes due to unsafe or hazardous living conditions, or due to illegal use of the structure as a residence, or tenants who relocate due to a large rent increase, oftentimes confront difficulties in finding temporary housing while said structure is being repaired, and/or difficulties in finding other permanent affordable housing. Further, said difficulties create a financial hardship for said tenants. The city council also finds that property owners who do not maintain rental properties and who allow said structures to become unsafe or hazardous should bear responsibility for the hardship their actions create for said tenants. Therefore, the city council finds and declares it necessary to enact this chapter to protect the public health, safety and welfare. Nothing herein shall limit or preclude other remedies available to tenants under the law.
(Ord. 2018-20 § 1 (part), 2019: Ord. 2018-02 § 1 (part), 2018: Ord. 92-30 § 1, 1992: Ord. 91-43 § 5, 1991).
21.03.020 DEFINITIONS.
For purposes of this chapter, the following words and phrases, whenever used, shall be construed as defined in this section:
(a) “Fair market value” shall mean either the fair market value rent for a unit of comparable size, as established by the most current Federal Department of Housing and Urban Development schedule of fair market rents, or the tenant’s actual rent at the time of relocation, whichever is greater. If only a portion of the property is affected (for instance, one unit of a property that contains two units, or an additional bedroom added outside of habitable living space), the fair market value will be calculated on the bedrooms and/or rent of the affected areas.
(b) “Displacement” shall mean either:
(1) When tenant(s) is/are required to vacate structures rented for residential purposes due to unsafe or hazardous living conditions, as defined below, or due to illegal use of the structure as a residence. These types of displacement will fall into three categories:
(A) “Temporary displacement” shall mean a displacement of zero to fourteen days;
(B) “Short-term displacement” shall mean a displacement of fifteen to fifty-nine days;
(C) “Long-term displacement” shall mean a displacement of sixty days or more; or
(2) When tenant(s) is/are forced to relocate due to a large rent increase.
(c) “Large rent increase” shall mean a rent increase of more than five percent in one year or cumulatively more than seven percent in any two consecutive years (seven percent over two consecutive years includes compound interest; e.g., for a maximum five percent increase in one year followed by a one-and-nine-tenths percent increase in the following year).
(d) “Relocation assistance” shall mean relocation payment(s), suspension of rents due while the tenant does not occupy the property, and the right of first refusal to reoccupy a residential structure, as defined in this section, for tenant(s) affected by displacement.
(e) “Relocation payment” shall mean:
(1) For tenants who are required to vacate structures rented for residential purposes due to unsafe or hazardous living conditions, or due to illegal use of the structure as a residence:
(A) And where the property owner has established that there will be only a temporary displacement, the immediate payment of one month’s fair market value and an additional payment of three hundred dollars to each adult tenant to allow for additional costs related to the displacement.
(B) And where the property owner has established there will only be a short-term displacement, the immediate payment of three months’ fair market value and an additional payment of three hundred dollars to each adult tenant to allow for additional costs related to the displacement.
(C) And where a temporary displacement has turned into a short-term displacement, the payment of an additional two months’ fair market value within three days of the change in the term of displacement.
(D) And where a short-term displacement has turned into a long-term displacement, the payment of one additional one month’s fair market value within three days of the change in the term of displacement.
(E) And where a long-term displacement is anticipated, or the owner has not established there will be a shorter displacement, the immediate payment of four months’ fair market value and an additional payment of three hundred dollars to each adult tenant to allow for additional costs related to the displacement.
(2) For tenant(s) affected by any displacement, an agreement for other arrangements made between the property owner and the tenant(s) which provides equal benefits to the tenant(s) as evidenced by a written agreement between the tenant(s) and the property owner may substitute for the payment(s) required in subsection (e)(1) or (e)(3). Such agreement shall at a minimum contain each of the following components:
(A) The names of the current tenant(s) of the unit being vacated, and an indication of who is considered the head of household therein;
(B) The address and the number of the unit from which the tenant(s) is/are being displaced;
(C) A statement indicating the amount of relocation payment to which the tenant(s) is/are entitled, based on the fair market value for the size of the subject unit;
(D) A statement that the tenant(s) has/have waived the right to such relocation payment, and describing what alternative arrangements of equal benefit the property owner has agreed to provide the tenant(s), which is acceptable to the tenant(s) in lieu of the lump sum relocation payment(s) set forth in subsection (e)(1) or (e)(3); and
(E) The address, if known, of the location to which the tenant(s) plans to move.
(3) For tenants who relocate due to a large rent increase, the payment of two months of the tenant’s actual rent, that was in effect prior to the effective date of the large rent increase, within twenty-one calendar days after a tenant gives the owner notice of intent to vacate due to a large rent increase or before the tenant(s) vacate the property, whichever is soonest.
(4) “Immediate payment” of any relocation payment shall mean payment delivered to the tenant prior to the time the tenant vacates the unit or within one day thereafter.
(5) A relocation payment shall be a separate requirement and obligation payable to a tenant, and it is in addition to the refund of any security deposit pursuant to California Civil Code Section 1950.5 and/or the payment of interest accrued on said security deposit pursuant to Chapter 21.02.
(f) “Right of first refusal” shall mean the right of a tenant to reoccupy a residential structure on the site formerly occupied by said tenant once the residential structure is repaired and becomes habitable, or once housing is redeveloped on the site.
(g) “Tenant” shall mean each person who occupies a structure for residential purposes with the knowledge and/or consent of the property owner and/or the property owner’s agent. Persons residing in homeless shelters, persons encamped on public lands, and persons residing in vehicles are not tenants under this definition.
(h) “Unsafe or hazardous” living condition is an issue identified by the city, and posted to the property, stating that the dwelling or portion of the dwelling is unfit for human habitation, creating the need for the tenant(s) to vacate. Examples may include, but are not limited to, structural deficiencies that threaten safety, inadequate escape/rescue access for sleeping quarters, or leaking gas lines.
(Ord. 2025-23 § 1, 2025; Ord. 2018-20 § 1 (part), 2019: Ord. 2018-02 § 1 (part), 2018: Ord. 92-30 § 2, 1992: Ord. 91-43 § 5, 1991).
21.03.030 RELOCATION ASSISTANCE REQUIREMENTS.
(a) Relocation Assistance. The owner of any structure rented for residential purposes shall provide relocation assistance and make relocations payment(s), as specified in Section 21.03.020, to the tenant(s) that are required to vacate due to unsafe or hazardous living conditions; or due to illegal use of the structure as a residence; or after a tenant gives the owner notice of intent to vacate due to a large rent increase.
(b) No refund on relocation payment(s) is due to the property owner, including when displacement is shorter than anticipated, unless one of the exemptions of Section 21.03.040 applies.
(c) Proof of Compliance. In order to provide proof of compliance by the property owner with the relocation payment requirements due to unsafe or hazardous living conditions or due to illegal use of the structure as a residence, a copy of the check or money order provided to the tenant(s), and a receipt signed by the tenant(s), or a copy of the written agreement executed by the property owner and the tenant(s) providing for and describing alternative arrangements under Section 21.03.020(e)(2), shall be provided to the code compliance specialist of the city of Santa Cruz department of planning and community development within five days of the date that the unit is vacated by the tenant(s).
(d) Right of First Refusal. Any tenant(s) evicted or required to vacate any residential structure due to unsafe or hazardous living conditions or due to illegal use of the structure as a residence shall be given the right of first refusal to reoccupy a residential structure on the site once said structure becomes habitable, or once a replacement housing structure is constructed on the same site.
(1) The owner of said structure shall, at the time the tenant(s) vacates, provide written notice advising the tenant(s) of the right of first refusal. Said notice shall include a current address and telephone number which can be used by the tenant(s) to contact the owner.
(2) It shall be the tenant’s responsibility to provide the owner of said structure with contact information consisting of the tenant’s current address and/or telephone number to be used for future notification, and to provide updated contact information to the owner upon change of said information.
(3) Thereafter, when said structure becomes available, the property owner shall give written notice to the tenant(s) advising said tenant that the structure is ready for occupancy. Said written notice shall be made by certified mail, return receipt requested. If there are multiple tenants with this right, and they do not intend to live together, the property owner’s notice shall advise that the first tenant that confirms acceptance shall have the right to reoccupy. If the accepting tenant thereafter fails to reoccupy, the landlord must thereafter offer the right to reoccupy to the other tenant(s) again.
(4) If the property owner cannot locate a previous tenant(s) after two attempts over a period of two weeks, the property owner shall be deemed to have complied with the right of first refusal provision of this chapter, and the tenant’s right of first refusal shall thereafter be forfeited.
(5) Owner shall offer the structure, or a redeveloped structure on the same site, at the same rental rate that was in effect at the time the tenant(s) vacated the property and the time during which the property was vacated will be tolled for application of rent increase(s) under this chapter and under California Civil Code 1947.12 or its successor law.
(6) If an owner fails to offer the tenant(s) first refusal and re-rents the property, the tenant(s) shall be entitled to the payment of an additional four months’ fair market value.
(7) With respect to the first right of refusal, where the provisions of state and local law conflict, the provision that provides the greater protections to the tenant(s) shall take precedent.
(Ord. 2025-23 § 2, 2025; Ord. 2018-20 § 1 (part), 2019: Ord. 2018-02 § 1 (part), 2018: Ord. 92-30 § 3, 1992: Ord. 91-43 § 5, 1991).
21.03.040 EXCEPTIONS.
(a) The following tenant(s) evicted or required to vacate as a result of unsafe or hazardous living conditions or illegal use, shall not be entitled to receive relocation assistance from the property owner:
(1) Any tenant who is then in default of rent (except tenants withholding rent pursuant to state law for correction of unsafe or hazardous conditions);
(2) Any tenant who refuses to promptly vacate the property after the portion of the structure they have been occupying is posted as unsafe or hazardous, unless there is alternative agreement under Section 21.03.020(e)(2) allowing occupancy of a different part of the property;
(3) Any tenant who refuses to vacate after the timely payment of the relocation payment, unless there is alternative agreement under Section 21.03.020(e)(2); or
(4) Any tenant who has caused or substantially contributed to the condition(s) giving rise to the unsafe or hazardous living condition(s) of the property.
(b) Property owners are not required to provide relocation assistance to any tenant evicted or required to vacate a residential structure that becomes unsafe or hazardous due to recent events that are beyond the control of the property owner.
(c) For tenants who relocate due to a large rent increase, tenant(s) shall provide such notice of intent to vacate no later than sixty days after the effective date of such increase. If such notice is not given by tenant within sixty days of effective date of rent increase, tenant is understood to have accepted such increase and is no longer eligible to claim relocation assistance from the property owner.
(d) Properties owned by the city are not subject to the large rent increase relocation assistance provisions of this chapter.
(e) Units governed by deed restrictions for affordable housing are not subject to the large rental increase provisions of this chapter.
(Ord. 2025-23 § 3, 2025; Ord. 2018-20 § 1 (part), 2019: Ord. 2018-02 § 1 (part), 2018: Ord. 92-30 § 4, 1992: Ord. 91-43 § 5, 1991).
21.03.050 RENT INCREASES DURING REPAIRS.
(a) In those cases where the owner has been issued a notice and order by the city to repair or remedy unsafe or hazardous living conditions or illegal use of residential rental property and where said repairs or remediation does not cause displacement of the tenants, thereby allowing the tenants to remain in residence while said repairs are undertaken, it shall be unlawful for a property owner to increase the amount of rent for any structure rented for residential purposes during the time that repairs are being made pursuant to the city notice and order requiring said repairs. No rent increase shall thereafter be levied until the city has issued a certificate of passed inspection verifying the fact that said repairs or remediation has been completed.
(b) In those cases where a notice and order has been issued to a property owner by the city to repair or remedy unsafe or hazardous living conditions or illegal use of residential rental property, and where said notice and order has been issued by the city within ninety days of a rent increase levied by the property owner upon the tenants of the property, and where said repairs or remediation does not cause displacement of the tenants, thereby allowing tenants to remain in residence while said repairs are undertaken, the property owner shall be required to roll back rents to the rates of rent charged by the landlord prior to the subject rent increase. In addition, all excess rents collected by the property owner between the date of the rent increase and the date of the notice and order shall be refunded to the tenants. Thereafter, it shall be unlawful for the property owner to increase the amount of rent during the time that said repairs and remediation are being made pursuant to the subject notice and order requiring said repairs and no rent increase shall be levied until the city has issued a certificate of passed inspection verifying the fact that said repairs or remediation has been completed.
(Ord. 2025-23 § 4, 2025; Ord. 2018-20 § 1 (part), 2019: Ord. 2018-02 § 1 (part), 2018: Ord. 2001-12 § 1, 2001: Ord. 91-43 §5, 1991).
21.03.060 VIOLATION AND PENALTY.
Any violation of this chapter shall be deemed an infraction for the first offense. Any subsequent violation occurring within six months from the first offense shall be deemed a misdemeanor. In addition to any other available remedies and penalties, said offense(s) shall be subject to all of the remedies and penalties provided for in Title 4. In accordance with Section 4.12.030, an administrative civil penalty of up to two thousand five hundred dollars per day may be assessed for each day during which a property owner or manager fails to provide relocation assistance required by Section 21.03.030 following issuance of a written order or notice of violation by the city. Nothing herein shall limit the right of a tenant to enforce the obligations provided herein by civil action or by any other legal remedy which may be available to said tenant.
(Ord. 2025-23 § 5, 2025; Ord. 2018-20 § 1 (part), 2019: Ord. 2018-02 § 1 (part), 2018: Ord. 92-30 § 5, 1992: Ord. 91-43 § 5, 1991).
21.03.070 PRIVATE RIGHT OF ACTION.
The city maintains discretion to have any violation contained in this chapter to be enforced through civil matters rather than by the city. Further, any person whose rights pursuant to this chapter have been violated shall have the right to file an action for injunctive relief and/or damages. Whoever is found to have violated this chapter shall be subject to appropriate injunctive relief and shall be liable for damages, costs and reasonable attorney’s fees. Treble damages shall be awarded for willful failure to comply with the payment obligation established by this chapter. Any action pursuant to this section shall be a civil matter and adjudicated through civil court.
(Ord. 2025-23 § 6, 2025; Ord. 2018-20 § 1 (part), 2019: Ord. 2018-02 § 1 (part), 2018).