Half Moon Bay homes in on rent control

Councilmembers were also asked to decide between a 60% and 80% cap in changes to the CPI, reaching a consensus that 60% of the consumer price index will be included in the rent stabilization ordinance. The CPI continually adjusts and is linked to the price of common goods. It has risen 3.2% in the last 12 months.

The legislation will be based on the Costa Hawkins model, which enforces yearly rent increase limits typically between 3% to 5% for multifamily buildings built prior to 1995. 

Councilmember Debbie Ruddock said that she was not in favor of a rent stabilization ordinance and did not participate in a consensus for those policy questions. 

“I’m in support of the tenant protections, but not the rent control program,” she said.  

The City Council also affirmed that a part of the ordinance would be aimed at protecting subtenants from price-gouging by placing limits on the amount of rent cumulatively charged in a rent-stabilized unit. The goal is to restrict master tenants from making money off of subtenants and legitimize subtenant rights by providing lease options, Doughty said. 

“That’s part of the equation, to get people under leases, even if they’re subtenants, so they have rights and they know the term of their lease and they know they’re not going to have rent increases that year,” he said. 

The ordinance will also include continuation of a voluntary mediation program for dispute resolution between tenants and landlords and the creation of a rent stabilization board, likely comprised of the City Council, councilmembers directed staff. 

Doughty also emphasized that the rent control ordinance would not apply to deed-restricted units, single-family homes or condominiums and would not result in a reduction of rent during the work session. In addition, a unit vacancy allows the base market rent to be reset by a landlord. 

The City Council directed a policy specification that the tenant protections ordinance — which will provide relocation assistance to those under no-fault, just cause evictions, prohibit harassment and protect tenants from arbitrary eviction proceedings, among other stipulations — would apply to virtually all rental units. 

But Doughty emphasized that landlords would still be able to conduct evictions when a tenant is found at fault. 

“This would not affect what constitutes an at-fault eviction,” he said. “When someone stops paying, when someone violates their lease, there are provisions that allow for a landlord to remove a tenant. This ordinance does not supersede or modify that.” 

The City Council did not decide on a direction for a potential capital improvement petition process for landlords to make rental adjustments based on significant and unanticipated capital costs. The issue will be revisited when the ordinance is introduced. 

Several community members spoke at public comment in support of tenant protections and bettering Half Moon Bay resident’s living conditions, including Bill Heavlin, who suggested the City Council tie rent increases to increases in minimum wage. 

“Here’s my recommendation: that the city and its staff seriously consider a framework that links any increases in residential rents to its minimum wage. Currently, its minimum wage tenants experience the rent part of this equation, but not the wage part,” he said.