Chapter 16
RELOCATION ASSISTANCE FOR DISPLACED TENANTS

Sections:

8-16.01    Intent and purpose.

8-16.02    Definitions.

8-16.03    Notice of relocation rights and responsibilities.

8-16.04    Exercise of relocation rights.

8-16.05    Relocation assistance required.

8-16.06    Appeal.

8-16.07    Deposit.

8-16.08    Effect of appeal on notice and order.

8-16.09    Hearing on appeal.

8-16.10    Replacement rental unit in lieu of relocation payment.

8-16.11    Right of first refusal.

8-16.12    Right of first refusal procedure.

8-16.13    Tenant’s reimbursement of relocation payment.

8-16.14    Restriction on rent increase after rehabilitation.

8-16.15    Exceptions.

8-16.16    Violations—Penalties.

8-16.01 Intent and purpose.

It is found and declared that in the City of Watsonville persons in rental housing who must vacate and be displaced due to substandard, unsanitary and hazardous living conditions which render such housing unfit or unsafe for human occupancy often have difficulty finding alternative temporary housing and are often not aware of the relocation assistance and obligations. For those displaced, the process involved in prosecuting a relocation lawsuit is impractical. This creates an undue financial hardship for Tenants.

It is also found and declared that the existence of such substandard buildings as dwelling units threatens the physical, social and economic stability of sound residential buildings and areas; necessitates disproportionate expenditures of public funds for remedial action; impairs the efficient and economical exercise of governmental powers and functions and destroys the amenity of residential areas and neighborhoods.

The Council also finds that Owners who allow such housing to become dangerous to the health, safety, and welfare of the residents and the general public should bear some of the financial responsibility for the economic hardship such conduct creates for such Tenants.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.02 Definitions.

For the purpose of this Chapter, unless otherwise apparent from the context, certain words, and phrases used in this Chapter are defined as follows:

(a)    “Appeal” shall mean the dispute resolution process established in Chapter 6 of the Dangerous Buildings Code (except for Sections 605.1 through 605.6 inclusive) but shall be limited in scope solely to the identification of Responsible Party. The decision of the Hearing Officer shall be final.

(b)    “City Relocation Ordinance Brochure” shall mean a document published by the City in English and Spanish describing relocation rights and responsibilities under this Chapter, including all forms of Relocation Assistance and rights of appeal hereunder.

(c)    “Dangerous Buildings Code” shall mean the Code for the Abatement of Dangerous Buildings of the City of Watsonville, as it may from time to time be ordained and amended.

(d)    “Displaced” shall mean the status of a Tenant who receives a Notice and Order.

(e)    “Fair Market Value Rent” shall mean the most recent published rent values established by the Federal Department of Housing and Urban Development for the Section 8 Rental Assistance Program in the Federal Fair Housing Act (42 U.S.C. 3601 et seq.).

(f)    “Hearing Officer” shall mean the Hearing Examiner described in Chapter 6 of the Dangerous Buildings Code. The Hearing Officer shall be appointed by the City Manager. Unless the appellant agrees otherwise, the Hearing Officer shall be an attorney licensed and in good standing for at least five (5) years by the State Bar of the State of California and with no adverse or pending disciplinary action.

(g)    “Moving Expenses” shall mean the fixed payment amount established by the Federal Highway Administration of the United States Department of Transportation pursuant to 49 Code of Federal Regulations Section 24.302, as it may be amended from time to time, and based on the number of rooms and ownership of furniture, and up to three (3) months of storage of such items, if required.

(h)    “Notice and Order” shall mean the written notification described in Chapter 4 of the Dangerous Buildings Code where it has been determined by the Building Official that the Unit must be vacated within thirty (30) days or less of issuance of the Notice and Order.

(i)    “Owner” shall mean the person or persons holding legal or equitable title to the property upon which a Notice and Order has been issued. Sale or transfer of property after the Notice and Order is signed shall not excuse obligations imposed on the Owner pursuant to this Chapter except as to the Right of First Refusal, and then only as to bona fide purchasers for value who have no actual nor constructive notice of the Notice and Order at the time the deed transferring title records.

(j)    “Relocation Assistance” shall mean providing a Displaced Tenant with either a Replacement Rental Unit and Moving Expenses or Relocation Payment and Moving Expenses, and, in either case, a Right of First Refusal to reoccupy the vacated Unit after rehabilitation, all as defined herein.

(k)    “Relocation Payment” shall mean the payment by the Owner of an amount equal to three (3) months’ Fair Market Value Rent for the Unit being occupied, or three (3) months of the Tenant’s actual rent at the time of relocation, whichever is greater.

(l)    “Replacement Rental Unit” shall mean a substitute Unit, mutually acceptable to Tenant and the Owner, provided by the Owner, which is compliant with law and reasonably adequate for the number of Displaced Tenants.

(m)    “Responsible Party,” except as provided in Section 8-16.15 of this Chapter, shall mean as determined by the Hearing Officer, the person or persons (including, but not limited to, the Owner, the Owner’s rental agent, manager, Tenant, or other person) who predominantly (more than fifty (50%) percent) caused the Notice and Order to be issued. To the extent relevant, a factor to be considered in determining the Responsible Party is whether the Unit lacks permits from the City of Watsonville or otherwise violates the Watsonville Municipal Code.

(n)    “Right of First Refusal” shall mean the right of a Tenant to reoccupy their former Unit after the Unit is repaired and becomes habitable. Such Right of First Refusal shall be superior to the rights of any other person until such Tenant relinquishes such Right of First Refusal pursuant to this Chapter.

(o)    “Tenant,” for the purposes of this Chapter, in the singular or plural, shall mean any paying renter, guest, lessee or sublessee who is in lawful tenancy of a Unit or with the actual or constructive knowledge of the Owner.

(p)    “Unit” shall mean any structure used for habitation including a single room occupancy (SRO), single family building, multi-family building, residential hotel, rooming or boarding house, mobile home, or recreational vehicle or other structure, legal or illegal which is used to house persons. The term “Unit” as used in this Chapter shall exclude hospitals, motels, hotels, rest homes, shelters, and similar living accommodations that provide closely managed care.

(q)    “Vacation Date” shall mean the date by which a Tenant is required to vacate a Unit, pursuant to a written Notice and Order.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001, as amended by § 1, Ord. 1168-04(A) C-M, eff. February 10, 2004)

8-16.03 Notice of relocation rights and responsibilities.

Whenever a Notice and Order is issued, both Notice and Order and a City Relocation Ordinance Brochure shall be served on the Owner and the Tenants of each Unit for which such Notice and Order is issued. If no Tenant can be found at the Unit, both documents shall be posted in a conspicuous place on the Unit in English and Spanish.

Such documents must be served on the Owner in the manner prescribed in Section 401.4 and Proof of Service prepared in the manner prescribed in Section 401.5 of the Dangerous Buildings Code.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.04 Exercise of relocation rights.

Tenant shall have five (5) business days from the date of the Notice and Order is served or posted to file a request for Relocation Assistance with the City Clerk. Said request must generally identify the Tenants for whom Relocation Assistance is requested by name(s), gender, and approximate ages, the name of the person and address to whom rent was paid, the name of the manager, landlord, or other person to whom rent was paid, the amount of the rent and the rental period (i.e. weekly, monthly or otherwise), whether any rent has been withheld and the date through which rent has been paid. The City Clerk shall notify the Owner of such request in the manner described in Section 401.4 of the Dangerous Buildings Code.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.05 Relocation assistance required.

Where a request for Relocation Assistance has been fully filed, it shall be unlawful for the Owner to refuse to provide the Relocation Assistance required by this Chapter.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.06 Appeal.

Where the Owner contend(s) that the conditions which caused the Notice and Order to be issued were predominantly caused by other persons, including but not limited to, Tenant or Tenant’s guest, the Owner may file an appeal with the City Clerk. To be effective, the form of the appeal must be in writing, filed within five (5) business days of service of the Notice and Order; comply with Section 501.1 of the Dangerous Buildings Code and be accompanied by the deposit described in Section 8-16.07 of this Chapter. Failure to file such appeal or otherwise comply with this Chapter or Section 501.1 shall constitute a waiver as provided in Section 502 of the Dangerous Buildings Code. For the purposes of this Section, the Owner shall be assumed to have received a copy of the Notice and Order and City Relocation Ordinance Brochure five (5) business days after being served in the manner described in Section 401.4 of the Dangerous Buildings Code.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.07 Deposit.

The deposit for appeal is established at One Thousand Five Hundred and no/100ths ($1,500.00) Dollars and as an administrative fee for each unit for which an appeal is filed. The administrative fee shall be used by the City to pay for actual costs of a Hearing Officer, for staff time and any translation services incurred in processing the appeal. The amount of the administrative fee may be adjusted from time to time by Council resolution. Such deposit shall be held by the City in an aggregated demand account pending a decision on appeal.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001, as amended by § 1, Ord. 1168-04(A) C-M, eff. February 10, 2004)

8-16.08 Effect of appeal on notice and order.

Except for the obligation to provide Relocation Assistance as provided in the Notice and Order, enforcement of any Notice and Order issued shall not be stayed during the pendency of a properly and timely filed appeal of the Notice and Order issued pursuant to this Chapter. If no appeal is filed as required by this Chapter, the Owner shall provide the Relocation Payment and the Moving Expenses to the Tenant or provide a Replacement Unit and Moving Expenses by certified check or money order within five (5) business days of service by the City Clerk of the request for Relocation Assistance.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.09 Hearing on appeal.

(a)    If the Owner appeals, the hearing procedure on appeal shall be as set forth in Chapter 6 of the Dangerous Buildings Code.

(b)    A decision on the appeal shall be made by the Hearing Officer within two (2) business days of the hearing.

(c)    Within five (5) business days following decision by the Hearing Officer, the Relocation Payment or Relocation Assistance shall be disbursed as follows:

(i)    If the City prevails on appeal, the Relocation Payment and/or Relocation Assistance shall be furnished to the Tenant by the Landlord and the portion of the deposit attributable to the administrative fees incurred by the City shall be released to the City, remainder if any to the Owner.

(ii)    If the Owner prevails, all monies paid by the Owner shall be returned to the Owner, including the administrative fee.

(d)    If the Owner is determined not to be the Responsible Party, the City may thereafter seek recovery from others.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001, as amended by § 1, Ord. 1168-04(A), eff. February 10, 2004)

8-16.10 Replacement rental unit in lieu of relocation payment.

The Owner, may at their option and in lieu of a Relocation Payment, provide a Replacement Rental Unit to a Displaced Tenant. If such option is exercised by the Owner, the Owner shall provide written notification to the Tenant and be obligated to pay Moving Expenses but not a Relocation Payment. In such event, the Owner shall transfer any amount previously collected from the Tenant as a security or other deposits in the rental agreement for the vacated Unit to Replacement Rental Unit.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.11 Right of first refusal.

Any Tenant who vacates a Unit as a result of Notice and Order shall also have a Right of First Refusal to reoccupy said Unit after any repair or rehabilitation. Said Right of First Refusal shall be for the time period set forth in Section 8-16.12 of this Chapter.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.12 Right of first refusal procedure.

The procedure for giving and exercising said Right of First Refusal is as follows:

(a)    The Owner shall make reasonable efforts to provide each Displaced Tenant with a City Relocation Ordinance Brochure when the Tenant vacates. At or about the same time, the Tenant and Owner shall exchange addresses and telephone numbers to be used for future notification and shall update such information should changes occur. If the Tenant fails to provide the Owner with the Tenant address or change of address, or provides an incorrect address, the Owner shall be excused from providing actual notice so long as such Owner provides notice at the address or addresses given to the Owner by the Displaced Tenant.

(b)    At least fifteen (15) business days before said Unit becomes habitable, the Owner shall give written notice to the Displaced Tenant that the Unit is or will be ready for occupancy and that the Tenant must contact the Owner in writing at the address provided in the notice within fourteen (14) business days after the date the notice was mailed U. S. Postal Service Certified Mail to the address the Displaced Tenant has provided the Owner. The notice shall also give the Owner’s current address and telephone number. The notice shall state that the Unit is or soon will be available for re-occupation, and provide a reasonably accurate date the Unit will be available for re-occupation.

(c)    If the Tenant fails to contact the Owner in writing within fourteen (14) business days from the date the notice was mailed or personally delivered to Tenant at the address or addresses provided to the Owner, the Right of First Refusal shall expire automatically. Said written notice shall be made by personal delivery or through the U. S. Postal Service Certified Mail with proof of service showing to whom, when and where delivered. Tenant’s response must also be made by personal delivery to the Owner or through the U. S. Postal Service Certified Mail with proof of service showing to whom, when and where delivered.

(d)    If the Owner receives no such response from the previous Tenant within the fourteen (14) business days following Owner’s mailing or personal delivery of the notice offering the Right of First Refusal, the Owner shall be deemed to have complied with the Right of First Refusal obligation of this Chapter, and the Tenant’s Right of First Refusal shall thereafter expire automatically.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.13 Tenant’s reimbursement of relocation payment.

If any Tenant exercises such Right of First Refusal to reoccupy the Unit formerly occupied by said Tenant or a Replacement Rental Unit provided by Owner, said Tenant shall return any unused portion of the Relocation Payment to the Owner. Such unused portion shall be reimbursed to Tenant’s re-occupation of said Unit.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.14 Restriction on rent increase after rehabilitation.

The first twelve (12) months after the Tenant reoccupies the Unit, rent cannot exceed Fair Market Value for a Unit of comparable size.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)

8-16.15 Exceptions.

The Owner shall have no obligation to provide Relocation Assistance under any of the following circumstances:

(a)    The Owner has given the Displaced Tenant at least thirty (30) days notice to vacate the Unit before the Notice and Order is issued and there has been no unresolved complaint of a violation of Title 8 under this Code filed within six (6) months before issuance of the Notice and Order.

(b)    The Displaced Tenant is, at the time the Notice and Order is issued, in default of rent, or refuses to vacate. However, a Tenant lawfully withholding rent pursuant to Section 1942 of the California Civil Code or pursuant to other statutory or common law right to withhold rent and to repair conditions rendering the Unit untenantable shall not be considered to be in default of rent to that extent, and shall not be ineligible for the Relocation Assistance provided by this Chapter for such reason.

(c)    When the Unit has become unsafe, unsanitary or hazardous due to flood, fire, earthquake, or other natural disaster that is beyond the control of the Owner, provided that such event causes the Tenant to be evicted or requires the Tenant to vacate the Unit within thirty (30) calendar days after such event.

(d)    Where the Notice and Order is issued solely because of the termination of a utility as a result of non-payment and the responsibility to pay for said utility is the Tenant’s.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001, as amended by § 1, Ord. 1168-04(A) C-M, eff. February 10, 2004)

8-16.16 Violations—Penalties.

Any person who shall violate, or refuse to abide by any provisions of this Chapter shall be subject to the remedies and penalties set forth in Chapter 2 of Title 1 of this Code. Any violation of this Chapter may be prosecuted as a misdemeanor. The remedies and penalties provided for Tenants and Owners in this Chapter shall be in addition to any other available remedies and penalties provided by the Watsonville Municipal Code or other law.

(§ 1, Ord. 1105-01 C-M, eff. July 12, 2001)