Does the City of Palo Alto have an ordinance that caps rent increases?
Units in Palo Alto do not have limits on rent increases. However, many units in Palo Alto may have rent limits under the State of California Tenant Protection Act if the building is more than fifteen years old and meets certain requirements. For units covered under the Tenant Protection Act, a landlord may only increase rent each year by 5% plus the annual percent change in the Consumer Price Index. The increase may not exceed 10%.
Civil Code § 1947.12(a)
What units are covered by the just-cause eviction protection of the City of Palo Alto Rental Housing Stabilization Ordinance?
All units in Palo Alto have just-cause eviction protection once all tenants have lived in the unit continuously for at least six months or once at least one tenant has lived in the unit continuously for twelve months or more, except:
- Single-family homes, condominiums, and townhomes where the owner is not a real estate investment trust, a corporation, or an LLC with at least one corporate member, and the owner has timely disclosed that the property is exempt;
- Owner-occupied duplexes where the owner lived on the property at the start of the tenancy;
- Owner-occupied housing where a tenant shares a kitchen or bathroom with the owner;
- Short-term lodging such as hotels, motels, and boarding houses;
- State-licensed medical or care institutions; and
- Affordable housing units subject to deed restrictions and government affordability agreements
Civil Code § 1946.2(e)
Sec. 9.68.04(b)
Does the City of Palo Alto Rental Housing Stabilization Ordinance require landlords to offer leases with minimal terms?
Landlords in Palo Alto must offer prospective tenants a written lease with a minimum term of one-year, except for owner-occupied units that are rented for less than one year; short-term sub-leases; single-family homes, condominiums, and townhomes; short-term lodging such as hotels, motels, and boarding houses; state-licensed medical or care institutions; housing where the landlord and tenant share accommodations; government-regulated or subsidized housing; housing acquired for public purposes; and employment-conditioned housing. Landlords are prohibited from modifying the rent during the term of the lease.
For existing tenants, the landlord must offer written renewal leases with a one-year term on an annual basis when the existing lease expires. This applies regardless of whether a tenant initially rejected such an offer and has occupied the unit for at least twelve months. For tenancies without a written lease, landlords were required to offer a written lease within thirty days of the ordinance taking effect.
Only after a tenant rejects the initial lease offer with the mandatory minimum term may a landlord offer shorter term lengths.
Sec. 9.68.03
What are the at-fault just causes for eviction from units covered by the City of Palo Alto Rental Housing Stabilization Ordinance?
- Failure to pay rent
- Failure to cure a material violation of the lease after receiving written notice
- Maintaining a nuisance, causing damage, failing to remediate unsanitary conditions, or using the unit illegally
- Refusing to renew a substantially similar lease
- Improper subletting or assignment
- Refusal to permit landlord access to the unit
- Failure to vacate after termination as property or resident manager
If the just-cause is a violation that can be cured by the tenant, the landlord must first provide the tenant with a notice of violation and allow the tenant an opportunity to cure the violation before serving a termination notice.
Civil Code § 1946.2(b)(1)
Sec. 9.68.04(c)
What are the circumstances in which a landlord may terminate the tenancy for no-fault under the City of Palo Alto Rental Housing Stabilization Ordinance?
- Demolition
- Withdrawal of all units on the parcel from the rental market pursuant to the Ellis Act
- Owner or relative move-in
- Compliance with a government order to vacate
- Compliance with a government order relating to habitability that necessitates vacating the rental unit
- Compliance with a local ordinance that necessitates vacating
Civil Code § 1946.2(b)(2)
What are the requirements of an owner or a relative move-in under the City of Palo Alto Rental Housing Stabilization Ordinance?
For an owner or relative move-in, Palo Alto adopts the requirements under the California Tenant Protection Act. Under this Act, if a tenant has lived in the unit for less than one year, the landlord must provide at least thirty days’ notice, and if a tenant has lived in the unit for longer than one year, the landlord must provide at least sixty days’ notice. The notice must state the just-cause reason for termination, identify the intended occupant and relationship to the owner, and explain the tenant’s right to relocation assistance.
A landlord cannot terminate a tenancy for an owner or relative move-in if the intended occupant already lives in another unit on the property or if another similar vacant unit is available on the property. Additionally, for leases entered into on or after July 1, 2020, a landlord may only evict a tenant for owner or relative move-in if the lease allows it or the tenant agrees in writing.
The new resident must move into the unit within ninety days and must use it as a primary residence for at least one year. If the landlord fails to comply with these requirements, the termination notice is void and the tenant is entitled to reoccupy the rental unit at the same rent and with all preexisting rights.
Civil Code § 1946.2(b)(2)(A)
Are landlords required to pay relocation assistance to tenants under the City of Palo Alto Rental Housing Stabilization Ordinance?
For units covered by the City of Palo Alto Rental Housing Stabilization Ordinance, a landlord who seeks to recover possession of the unit based on a no-fault just cause must provide notice of the tenant’s right to relocation assistance or a rent waiver with the notice of termination.
The landlord must pay the tenant relocation assistance equal to one months’ rent within fifteen days of serving the termination notice. If the landlord elects to waive the last month’s rent, the notice of available relocation assistance must explicitly state the amount of rent waived and that the tenant is not required to pay rent for the final month of tenancy.
For residential buildings covered by the City of Palo Alto Rental Housing Stabilization Ordinance with ten or more units, a landlord must provide enhanced relocation assistance when seeking to recover possession of a unit based on a no-fault just cause, unless the eviction is required to comply with governmental regulations relating to tenant qualification requirements or involves a temporary displacement of thirty-one days or less. The landlord must follow enhanced relocation assistance requirements based on the size of the unit.
- Studio apartment: $7,000
- One bedroom: $9,000
- Two bedrooms: $13,000
- Three or more bedrooms: $17,000
If the unit is occupied by multiple renters, the landlord must provide each tenant with a proportional share. The landlord must provide the tenant with half of the payment at the time the termination notice is served. The landlord must pay the remaining balance when the tenant vacates.
The landlord must pay an additional $3,000 if the tenant household is low-income or if the household includes someone who is sixty or older, disabled, or has a minor dependent child. Qualified tenants must provide the landlord with written notice and supporting documentation within fifteen days of receiving the termination notice. The landlord must pay the entire payment within fifteen days of receiving the tenant’s eligibility notice.
Low-income is defined as 80% of the area median income, as defined by HUD. Disability is a physical or mental impairment that if left untreated would limit a major life activity.
Sec. 9.68.06
Can a tenant sue for wrongful eviction under the City of Palo Alto Rental Housing Stabilization Ordinance?
A tenant who has been wrongfully evicted in violation of the City of Palo Alto Rental Housing Stabilization Ordinance may bring a civil action seeking damages for emotional distress, loss of the value of the unit, return of rent, and other equitable relief to restore the tenant’s position.
Sec. 9.68.08
