South City increased its relocation assistance policy for tenants that must vacate substandard housing units, mandating higher payments when they must relocate and restructuring payments to an upfront rather than reimbursement-based model.
The new rules passed during an April 8 City Council meeting state landlords must pay permanent relocation assistance equivalent to four times the monthly rent of the unit — or the equivalent of the U.S. Department of Housing and Urban Development’s fair market standard — in addition to $500 per bedroom for moving expenses. The update represents a stark increase from the previous relocation assistance amount, roughly equal to $10,000 for a two-bedroom unit. Under the new regulations, the assistance amount for a two-bedroom unit would be about $16,600.
According to a staff report, the requirement is triggered when the city issues a code violation deeming the unit unsafe or in substandard condition, requiring the tenant to relocate. Over the past two years, 18 households have been administered relocation assistance, the report added.
For temporary relocation assistance, which means vacating the unit for 30 days or less, tenants will be paid based on federal per diem rates, which must be provided within 24 hours of displacement.
Nell Selander, Economic and Community Development director, said during the meeting that the restructuring is helpful not just to tenants but to the city as well.
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"A big reason for why we're proposing this appeal and replacement is that it will save us time," Selander said during the meeting. “It is very labor intensive for the city.”
The temporary relocation amount would be equal to 50% of the permanent relocation payment, which could go up to 75% if the relocation extends beyond 30 days in some cases.
The new policy is part of a larger initiative to strengthen anti-displacement policies that go above and beyond Assembly Bill 1482, which places more restrictions on evictions, caps rental increases for many housing units and requires relocation assistance for some no-fault evictions. Last year, the city passed an ordinance that requires preference for current or previous city residents in affordable housing applications, and it also created an Anti-Displacement Community Advisory Committee in hopes of identifying other tenant protection-related programs as well. Housing advocates have cited the urgency for such policies in light of rising costs. In November, the city released a report showing that median gross rent increased by 80% between 2012 and 2022, and the Old Town neighborhood has seen a nearly 40% reduction of Latino residents.
The City Council unanimously approved the updated relocation assistance policy during the meeting.
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