Redwood City adopts new tenant protections

While much of the ordinance consolidated and aligned the city’s regulations with state policies, whether to include a right-to-return policy was discussed at length. 

Should a landlord choose to substantially remodel a rental unit that would displace the renter for more than 30 days, the right-to-return policy requires the landlord to reoffer that rental unit at the same rent and lease agreements agreed upon prior to the upgrades. 

Establishing this policy “does not appear to be a financial disincentive to landlords seeking to reinvest into their properties,” consultant Jason Moody said at Monday’s meeting. However, Chu and Gee both raised concerns whether this would be true. 

Chu shared her concern of approving policies that have unintentional consequences, and Gee questioned if landlords would be financially incentivized to improve their units if they can’t charge higher rents afterward. 

While protecting renters is top of mind, Chu and Gee said they don’t want to increase restrictions and regulations that will disincentivize landlords from maintaining their properties. 

“I get the need to get people back to their homes,” Gee said. “However, the right to return at the same rent … disconnected from the scope of work of substantial renovation is an issue for me.” 

In addition to the right-to-return policy, the updated tenant protection ordinance includes a substantially heftier financial requirement of landlords for relocation benefits. 

In 2019, California passed the Tenant Protection Act which requires a landlord to have “just cause” to terminate a tenancy, limits annual rent increases and requires landlords to provide displaced tenants with relocation assistance equal to one month of the tenant’s rent. 

The city’s tenant protection ordinance includes heftier relocation assistance for displaced tenants who are identified as low-income, requiring landlords to pay up to three or four months equivalent to the county’s fair market rent levels. 

Chu raised concern that this could be a major expense for landlords but the city’s Housing Leadership Manager Alin Lancaster said the intent was to “target assistance to those most likely to need it.”

Councilmembers who approved the ordinance agreed it would ultimately help renters and protect their rights. 

The city’s anti-displacement strategy is focused on preserving existing affordable housing, protecting housing options and producing housing. 

While progress on the latter has been made with Redwood City’s lofty housing goals, the work on the former two aspects of the strategy have been delayed by a variety of factors. 

In 2018, Redwood City adopted relocation assistance and minimum lease terms ordinances that looked to ease the financial burden for low-income families displaced and improve housing stabilization. However, the ordinances were not fully implemented “due to significant staff turnover in the city’s Housing Division and a complex implementation process,” according to a staff report. 

The board’s vote Monday approved the ordinance which will go into effect at the top of next year.