November 5, 2024 - Measure N

IMPARTIAL ANALYSIS BY TOWN ATTORNEY OF MEASURE N

TOWN OF SAN ANSELMO
MEASURE N

RENT STABILIZATION ORDINANCE REFERENDUM MEASURE

INTRODUCTION: This Measure was placed on the ballot following the submission of a referendum petition signed by the requisite number of San Anselmo voters. If approved by a majority of voters voting on the question, the Measure would enact an Ordinance establishing limits on annual rent increases for some residential rental property in the Town of San Anselmo.

BACKGROUND: On April 9, 2024, the Town Council adopted Ordinance No. 2024-1185, enacting San Anselmo Municipal Code Title 20 “Rent Stabilization and Tenant Protection” Chapter 1 “Rent Stabilization” (“Ordinance”). On May 2, 2024, a referendum petition against the Ordinance was filed and subsequently found to contain sufficient signatures. On June 11, 2024, the Town Council voted to place the Ordinance on the November 5, 2024 ballot.

MEASURE: Under State law, the Ordinance will become effective only if a majority of Town voters voting on the Measure approve the Measure.

The Ordinance would apply to some residential rental properties of three or more units. The Ordinance prohibits property owners from raising rents above 60% of the Consumer Price Index or a total of 5%, whichever is lower. Rents may be increased once per year. For tenancies commencing before June 21, 2023, base rent (the level from which rent may be increased) is the rent effective on June 21, 2023. For tenancies commencing on or after June 21, 2023, base rent is the initial rent. An owner may not charge separate utility charges in addition to rent unless the utilities are separately metered and in the tenant’s name. Owners must pay fees that may be adopted by the Town Council at a future date and must give notice of the Ordinance to tenants.

Under the Ordinance, an owner is entitled to a reasonable rate of return on their property. If an owner believes that the allowable rent does not provide a reasonable rate of return, the owner may file a Fair Return Petition (“Petition”) to increase rent beyond the amount permitted under the Ordinance. The Petition process provides tenants with notice and an opportunity to be heard. The Planning Director or designee shall hear the Petition and makes a decision based on factors including, but not limited to: changes in taxes, capital improvements, insurance costs, and required repairs. The owner or tenant may appeal the decision to the Planning Commission.

The Ordinance exempts units including: 1) rental units constructed after 1995; 2) deed-restricted affordable housing; 3) hotels and institutional facilities; 4) dormitories; 5) single-family homes and condominiums; 6) accessory and junior accessory dwelling units; and 7) properties with two or fewer rental units.

THE VOTE: A “yes” vote shall be counted in favor of the adoption of the Ordinance. A “no” vote shall be counted against the Ordinance’s adoption. This Measure will be approved if it receives a majority of “yes” votes.

s/MEGAN HOLT ACEVEDO
San Anselmo Town Attorney

ARGUMENT IN FAVOR OF MEASURE N

Vote YES on Measure N to extend local rent control to San Anselmo’s multifamily rental units.

For decades, local renters have been on the frontlines of Marin’s housing crisis. Over half of San Anselmo renters are rent burdened, paying over 30% of their wages towards rent. It’s hardly surprising: according to County census data, from 2009–2019, median rent for a 2-bedroom apartment increased 91%, far outpacing inflation. In that same window, median wages for a Marin County renter—$67,000—stagnated. Covid-19 has only added to the strain.

We can do better. Measure N keeps our community strong by applying local rent control to San Anselmo’s medium-to-large sized rental properties. Local rent control is a time-tested tool that keeps young families, essential workers, and fixed-income seniors in place. Hundreds of thousands of renters across the Bay Area are protected by local rent control, with people-first policies that limit increases to a percentage of inflation (CPI). San Anselmo renters deserve such protections.

Measure N offers a balanced solution. It caps annual rent increases at a percentage of CPI while guaranteeing landlords a “fair return.” This means that while renters are protected from unreasonable hikes, landlords can still recover costs and maintain profitability, ensuring a sustainable rental market. This balance is key to maintaining San Anselmo’s diversity and vibrancy.

Crafted with extensive input from renters, homeowners, and landlords, Measure N addresses the specific needs of San Anselmo. This thoughtful process resulted in a policy that applies only to larger multifamily units, which are increasingly owned by out-of-town corporations, while exempting single-family homes, ADUs, JDUs, and duplexes, which are often owned by local “mom-and-pop” landlords. Importantly, Measure N requires no new taxes, with any costs covered by a modest fee paid only by the affected properties.

Join the Marin Democratic Party (DCCM), Sierra Club, renters, homeowners, and small landlords who agree: YES on N!

TARRELL KULLAWAY
Vice Mayor of San Anselmo

STEVE BURDO
Councilmember/Former Mayor of San Anselmo

PAT JOHNSTONE
Landlord/Chair Marin Democratic Party (DCCM)

SUE SAUNDERS
Homeowner/Climate Action Commissioner

VICTORIA CANBY
Landlord/Artist

REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE N

Common sense San Anselmo Democrats are voting NO on Measure N. Excessive Berkeley-style rent control is not reasonable or right for our Town.

Measure N’s proponents are hiding the details. They don’t tell you how drastic Measure N is. It would cap annual rent increases at 60% of CPI, meaning a landlord couldn’t keep pace with inflation. Forcing landlords to lose money isn’t a fair or balanced response to housing affordability. It’s a recipe for disaster.

The current California statewide rent control law, the ‘Tenant Protection Act of 2019,’ has been a success in San Anselmo. It has allowed for a steady available supply of rental properties at reasonable rent-controlled prices. The current law strikes the right balance in protecting renters and promoting neighborhood housing. We don’t need Measure N.

Excessive rent control will discourage rental investments leading to less rental options. As proven in Berkeley, this leads to drastically increased rents for new tenants trying to move into the area. It also leads to run-down, unattractive rental properties.

Measure N is also bad for the Town. San Anselmo would need to devote significant staff time and cost to managing a whole new bureaucracy and rental registry. Further, impacted rental properties would see lowered assessments and the Town would lose property tax revenue. We’re a small town and are dependent on property taxes for a great deal of our services. We can’t afford to lose this revenue source.

Keep San Anselmo renter friendly.

Vote NO on Measure N.

EILEEN BURKE
Mayor, Town of San Anselmo

SUELLEN LAMORTE
Retired Ross Valley School Teacher

JEFF KROOT
Former Mayor, Town of San Anselmo

PAUL CHIGNELL
Former Mayor, Town of San Anselmo

FORD GREENE
Former Mayor, Town of San Anselmo

ARGUMENT AGAINST MEASURE N

We already have statewide rent control in California. We don’t need Measure N. Gavin Newsom championed rent control via the Tenant Protection Act in 2019 (Civil Code § 1947.12). This law protects tenants by limiting annual rent increases. It also promotes rental housing by allowing landlords to make some profit, keep up with inflation and survive. The current law strikes the right balance and works.

Measure N, conceived by the Berkeley Rent Board and pushed in San Anselmo by the Democratic Socialists of America, is completely unbalanced and harmful to San Anselmo. It goes way too far.

Measure N allows annual rent increases of only 60% of the local consumer price index. Without a tenant-specific meter it prohibits any utility pass through to the tenant irrespective of extent of the tenant’s utility use. It also prohibits pass through of insurance increases. Utility and insurance costs have skyrocketed. Forcing landlords to absorb all these increased costs is neither balanced nor fair.

Our Mom-and-Pop landlords aren’t gouging, corporate monsters. They allow many who otherwise wouldn’t be able to afford San Anselmo to live in our community. We need the rentals we have. Measure N would reduce rental housing.

The housing affordability crisis is a community problem. Forcing housing providers to lose money year after year via extreme rent control is a bad answer. If all profit is eliminated, rental properties aren’t maintained or improved. This lowers property values for all properties in San Anselmo, including single family homes. Alternatively, rentals get converted to condos, forcing lower income tenants out of the area.

San Anselmo should tackle the affordable housing issue as a community by building affordable housing. Singling out landlords for an unfair allocation of the burden is wrong.

Protect rental housing.

Vote NO on Measure N.

EILEEN BURKE
Mayor, Town of San Anselmo

FORD GREENE
Former Mayor of San Anselmo

SUELLEN LAMORTE
Retired Teacher

MITCH ONGARO
Business Owner

PAUL CHIGNELL
Former Mayor of San Anselmo

REBUTTAL TO ARGUMENT AGAINST MEASURE N

California enacted statewide rent control in 2020. The need was clear: In the decade prior, Marin’s median rent increased 91%, from $1,658 (2009) to $3,170 (2019). Measure N’s opponents assert that because there’s a statewide law, Measure N is unnecessary. But did Sacramento politicians really “strike the right balance” as claimed?

Here’s the math. State law caps annual increases at 5% plus inflation. Let’s pretend the state law was applied retroactively, starting in 2009. Taking the 2009 baseline ($1,658) applying an annual increase of 5% plus historical inflation rates, the monthly rent in 2019 would come to $3,431—more than doubling in a decade under Sacramento’s policy.

Measure N is a local response to local conditions. It keeps our community intact and prevents displacement for families and seniors who can’t afford these excessive rent increases. That’s why local organizations like the Marin Democratic Party (DCCM) and Sierra Club Marin support Measure N.

Although Measure N caps rent increases at a percentage of inflation (learn why: www.sananselmoforrentcontrol.com/faqs), it’s not true that Measure N “forces” landlords to absorb increased costs and lose profits. Landlords are constitutionally entitled to recover all costs—including insurance and utilities—and maintain fair returns on their investments.

We do agree that the housing crisis is a community problem. San Anselmo’s already adjusting to state housing mandates. Homeowners have been doing their part, accepting next-door rezonings and streamlined developments. Measure N proposes that mid- and large-scale landlords do their part, too, so that as San Anselmo prepares to welcome new neighbors, we stay welcoming for those already here.

TARRELL KULLAWAY
Vice Mayor of San Anselmo

STEVE BURDO
Councilmember/Former Mayor of San Anselmo

PAT JOHNSTONE
Landlord/Chair Marin Democratic Party (DCCM)

TIFFANY MCELROY
Renter/Teacher/San Anselmo Racial Equity Commissioner

VICTORIA CANBY
Landlord/Artist

FULL TEXT OF MEASURE N

TOWN OF SAN ANSELMO

RESOLUTION NO. 2024-4550
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF SAN ANSELMO CALLING A GENERAL MUNICIPAL ELECTION IN ITS JURISDICTION ON NOVEMBER 5, 2024 TO SUBMIT TO THE QUALIFIED VOTERS OF THE TOWN OF SAN ANSELMO A MEASURE SEEKING VOTER APPROVAL OF TOWN COUNCIL ORDINANCE NO. 2024-1185 ESTABLISHING RENT STABILIZATION REGULATIONS APPLICABLE TO CERTAIN RESIDENTIAL RENTAL UNITS; REQUESTING THE MARIN COUNTY BOARD OF SUPERVISORS CONSOLIDATE THE GENERAL MUNICIPAL ELECTION WITH ANY OTHER ELECTION CONDUCTED ON SAID DATE; REQUESTING ELECTION SERVICES BY THE COUNTY REGISTRAR OF VOTERS; AND PROVIDING RULES AND DEADLINES FOR ARGUMENTS AND REBUTTALS FOR AND AGAINST THE MEASURE

WHEREAS, at its meeting of April 9, 2024, the Town Council adopted Ordinance No. 2024-1185 “An Ordinance of the Town of San Anselmo Adding Title 20 ‘Rent Stabilization and Tenant Protections’ Chapter 1 ‘Rent Stabilization’ Establishing Rent Stabilization Regulations Applicable to Certain Residential Rental Units and Making Associated CEQA Determination;” and

WHEREAS, on May 2, 2024, a referendum proponent filed a referendum petition titled, “Referendum Against an Ordinance Passed by the Town Council” (“Referendum”) and the Referendum petition was accepted for filing following the Town Election Official’s prima facie review and determination that the number of signatures on the Referendum petition exceeded at least 10 percent of the voters of the Town according to the County Elections Official’s last official report of registration to the Secretary of State, which is currently 951 voters; and

WHEREAS, on May 2, 2024, the Town Elections Official submitted the Referendum petition to the Marin County Registrar of Voters for examination and a determination as to whether the Referendum petition contains sufficient valid signatures; and

WHEREAS, on May 15, 2024, the Marin County Registrar of Voters submitted to the Town Clerk, a Certificate of Signature Verification dated May 14, 2024, which determined that the Referendum petition contains 1471 valid signatures of qualified registered voters in the Town of San Anselmo and that the Referendum petition is therefore sufficient; and

WHEREAS, due to the Referendum, if the Town Council does not repeal Ordinance No. 2024-1185 in its entirety, the Council is required by California Elections Code section 9241 to submit the Ordinance to the voters at either the Town’s next regular election or at a special election held not less than 88 days after the order of the election; and

WHEREAS, the next regular election is the Town’s General Municipal Election scheduled for November 5, 2024; and

WHEREAS, the Town Council desires to place the Ordinance before the Town voters on November 5, 2024; and

WHEREAS, Ordinance No. 2024-1185 is attached hereto as Exhibit A and by this reference made an operative part hereof, and in accordance with all applicable law; and

WHEREAS, by adoption of this Resolution, the Town Council desires that the County of Marin render full services to the Town in connection with conducting the General Municipal Election; and

WHEREAS, all necessary expenses in performing these services shall be paid by the Town of San Anselmo; and

WHEREAS, under California Elections Code section 10400 et seq., the Town desires that the election be consolidated with other elections held on the same date; and

WHEREAS, it is also desirable to establish rules for submission of written arguments and rebuttals for and against the Initiative in accordance with the applicable California Elections Code procedures.

NOW, THEREFORE, the Town Council of the Town of San Anselmo hereby resolves as follows:

SECTION 1. Environmental Review.

The Town Council finds that this resolution and the placement of the Ordinance No. 2024-1185 on the ballot is not a “project” within the meaning of Public Resources Code section 21065 and section 15378 of the California Environmental Quality Act (CEQA) Guidelines and therefore, not subject to CEQA review.

SECTION 2. Recitals.

The Town Council hereby finds and determines that the foregoing recitals are true and correct and are incorporated herein and by this reference are made an operative part hereof.

SECTION 3. Call of General Municipal Election.

The Town Council hereby orders Ordinance No. 2024-1185 attached hereto as Exhibit A to be submitted to qualified voters of the Town at the General Municipal Election for the Town of San Anselmo to be held on the 5th day of November, 2024. The Ordinance shall be in the form attached hereto as Exhibit A and is incorporated herein by reference.

SECTION 4. Ballot Question.

The Town Council, pursuant to its right and authority, does hereby order that the ballot question for Ordinance No. 2024-1185 shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on November 5, 2024, in addition to any other matters required by law, there shall be printed the following ballot question:

“Shall Ordinance No. 2024-1185, establishing a prohibition on residential real property annual rental rate increases (applied only to triplexes and larger) that exceed 60% of the Consumer Price Index or 5%, whichever is lower, and defining a base rent as the rent in effect on June 21, 2023, be adopted?”

Yes                             No

SECTION 5. Request for Consolidation and Election Procedures.

The Town Council of the Town of San Anselmo hereby requests that the Board of Supervisors of the County of Marin:

1. Consolidate the Town’s General Municipal Election with any other applicable election conducted on November 5, 2024.
2. Pursuant to Elections Code section 10002, authorize and direct the County Registrar of Voters, at Town expense, to provide all necessary election services and to canvass the results of said election. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections, including but not limited to checking registrations, mailing ballots, hiring election officers and arranging for polling places, receiving absentee voter ballot applications, mailing and receiving absentee voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines.
3. The Town Clerk of the Town of San Anselmo shall receive the canvass from the County as it pertains to the General Municipal Election and shall certify the results to the Town Council, as required by law.

SECTION 6. Arguments and Impartial Analysis.

1. Primary arguments for or against Ordinance No. 2024-1185 shall be submitted no later than 5:00 p.m. on August 15, 2024.
2. Rebuttal arguments for or against Ordinance No. 2024-1185 shall be submitted no later than 5:00 p.m. on August 26, 2024.
3. Pursuant to state law, primary arguments for or against Ordinance No. 2024-1185 shall not exceed three hundred (300) words and shall be signed by no more than five persons.
4. Pursuant to state law, rebuttal arguments to the primary arguments for or against Ordinance No. 2024-1185 shall not exceed two hundred fifty (250) words and shall be signed by no more than five persons.
5. Pursuant to state law, the Town Clerk shall comply with all provisions of law establishing the priority of arguments for printing and distribution to the voters and shall take all necessary actions to cause the selected arguments to be printed and distributed to voters.
6. The Town Council adopts the provisions pertaining to rebuttal arguments contained in Elections Code section 9285 and directs the Town Clerk to comply with those provisions.
7. Pursuant to Elections Code section 9280, the Town Council directs the Town Clerk to transmit a copy of the Initiative to the Town Attorney. The Town Attorney shall prepare an impartial analysis for Ordinance No. 2024-1185 in compliance with state law. The Impartial Analysis shall be filed by the deadline set for filing primary arguments as set forth above.

SECTION 7. Transmittal of Resolution.

The Town Clerk shall submit a certified copy of this Resolution to the Board of Supervisors for the County of Marin.

SECTION 8. Severability.

If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Town Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

SECTION 9. Effective Date of Resolution.

This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED THIS 11th day of June, 2024 by the following vote:

AYES: Councilmember: Burdo, Colbert, Fineman, Kullaway, Mayor Burke
NOES: Councilmember: None
ABSENT: Councilmember: None
ABSTAIN: Councilmember: None

s/EILEEN BURKE
Mayor

ATTEST:

s/SERGE AVILA
Town Clerk

TOWN OF SAN ANSELMO

ORDINANCE NO. 2024-1185
AN ORDINANCE OF THE TOWN OF SAN ANSELMO ADDING TITLE 20 “RENT STABILIZATION AND TENANT PROTECTIONS” CHAPTER 1 “RENT STABILIZATION” ESTABLISHING RENT STABILIZATION REGULATIONS APPLICABLE TO CERTAIN RESIDENTIAL RENTAL UNITS AND MAKING ASSOCIATED CEQA DETERMINATION

WHEREAS, the Town of San Anselmo (the “Town”) is a general law city incorporated under the laws of the State of California; and

WHEREAS, in response to community concerns regarding unaffordable rents, tenant displacement, and the need to preserve affordable residential rental housing, the Town held a series of community meetings and Town Council meetings, and engaged in extensive community outreach regarding rent stabilization and tenant protection issues as follows:

• June 21, 2023 Town Council meeting. Council received information and discussed rent stabilization and tenant protection issues including State laws and other local jurisdictions’ rent stabilization actions.
• August 2023 Town webpage created, updated, and publicized containing summary of State rental protection laws, examples of local rent protection ordinances, and upcoming dates of community or Council meetings regarding renter protections.
• August 2023 Town publicized upcoming community meeting by placing information on the Town’s website, mailing postcards to all San Anselmo residential households and out-of-town landlords, hand-distributing postcards to apartment buildings with 10+ units, placing postcards in the Library and at Town Hall, and posting notices on Town announcement bulletin boards.
• August 2023 notice regarding renter protection community meetings included and publicized in the weekly Town Manager e-newsletter (5700 subscribers).
• Notice of renter protection community meetings posted on Instagram (2150 followers) and Nextdoor (11K members, 5K households) on August 29, 2023, September 14, 2023, and October 2, 2023.
• August 24, 2023 Town issued a press release to all media contacts regarding upcoming community renter protection discussion meetings.
• August 2023 e-mail comment portal established on Town website for members of the public to submit comments regarding renter protection issues.
• September 14, 2023 Community Workshop. Community workshop focused on tenants where staff received and recorded public comment.
• October 5, 2023 Community Workshop. Community workshop focused on landlords where staff received and recorded public comment.
• October 24, 2023 Town Council meeting. Council received summary of community workshops, took additional public comment, held a discussion, and gave direction to staff to return for further Council discussion.
• January 9, 2024 Town Council meeting. Council received additional public comment, held a discussion, and gave direction to staff to prepare rent stabilization discussion points for further Council discussion.
• March 12, 2024 Town Council meeting. Council received and recorded additional public comment, held a discussion, and gave direction to staff to prepare a Rent Stabilization Ordinance.

WHEREAS, U.S. Census data indicates that approximately 24% of Town households are renter-occupied with a median gross rent of $1,930, and that approximately 41% of Town renters are paying more than 30% of their income on housing; and

WHEREAS, pursuant to its police power under Article XI, Section 7 of the California Constitution, the Town may enact and enforce laws within its boundaries that promote the public health, safety, and general welfare that are not in conflict with general laws; and

WHEREAS, due to the disproportionate housing cost burden on residential tenants in the Town of San Anselmo and in order to help preserve affordable rental housing and prevent tenant displacement, the Town Council finds it necessary for the public health, safety, and general welfare to adopt an ordinance as set forth herein providing protections for residential tenants by regulating rental rates and other factors for certain residential rental units (“Ordinance”); and

WHEREAS, the Town Clerk caused notice of a Town Council public hearing regarding the Town Council’s adoption of the Ordinance in the Marin Independent Journal newspaper on as required by Government Code section 36933 and published the text of the Ordinance as required by State law; and

WHEREAS, on March 26, 2024 the Town Council held a duly noticed public hearing to consider introduction of the Ordinance and voted 3-2 in favor of the Ordinance; and

WHEREAS, on April 9, 2024 at its duly noticed and public meeting a majority of the Town Council voted to adopt the Ordinance; and

WHEREAS, the Ordinance is consistent with the Town’s General Plan, Housing Element, Policy 4 “Support the Preservation of Housing” because it helps conserve existing affordable housing stock; and

WHEREAS, the Ordinance does not impact the Town’s Climate Action Plan and is therefore not applicable; and

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF SAN ANSELMO DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Environmental Review.

This Ordinance is not subject to the California Environmental Quality Act (“CEQA”) because it does not constitute a “project” within the meaning of Public Resources Code section 21065, and CEQA Guidelines sections 15060(c)(2), 15060(c)(3), or 15378 because there is no potential that it will cause a reasonably foreseeable direct or indirect physical change in the environment. The restrictions contained herein, including but not limited to the residential rental cap, will not affect the physical environment. Additionally, the Ordinance is exempt from CEQA pursuant to the “common sense” exemption, CEQA Guideline section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment. There are no unusual circumstances, or other factors per CEQA Guideline section 15300.2, that support an exception to this exemption.

SECTION 2. Findings Incorporated.

The above recitals are true and correct and incorporated as findings herein.

SECTION 3. General Plan Consistency.

Town Council of the Town of San Anselmo does hereby find that the Ordinance is consistent with the General Plan, Housing Element, Policy 4 “Support the Preservation of Housing” because rent caps and rent stabilization protections will help preserve affordable housing.

SECTION 4. Ordinance Amendment.

A new Title 20 to the San Anselmo Municipal Code shall be added entitled: “Rent Stabilization and Tenant Protections”.

SECTION 5. Ordinance Amendment.

A new Chapter “Rent Stabilization” shall be added to Title 20 to read as follows:

20-1.101 Title. This Chapter shall be known as the “San Anselmo Rent Stabilization Ordinance”.

20-1.102 Applicability. This Chapter shall apply to property with three (3) or more residential rental units, none of which are exempt pursuant to Section 20-1.110, are located on the same parcel or lot, or contiguous parcels or lots, under common ownership.

20-1.103 Purpose. The purpose of this Chapter is to protect residential tenants from excessive rent increases, promote the long-term sustainability for tenants in the Town of San Anselmo, and preserve affordable rental housing while ensuring that landlords receive and maintain their ability to receive a fair rate of return on their rental property.

20-1.104 Definitions. For the purposes of this Chapter the following definitions apply:

1. “Annual Allowable Rent Increase” shall mean the allowable increase in Rent permitted within a twelve (12) month period as set forth in Section 20-1.105(b).
2. “Base Rent” shall mean the reference point from which the lawful Rent shall be determined and adjusted in accordance with this Chapter.
   1. Base Rent for tenancies that commenced before June 21, 2023 shall be the Rent in effect on June 21, 2023.
   2. Base Rent for tenancies commencing on or after June 21, 2023 shall be the initial rental rate charged upon the initial occupancy. For purposes of this Section “initial rental rate” means only the amount of Rent actually paid by the tenant for the initial term of the tenancy.
3. “Fair Return Petition” shall mean a petition made by an owner of residential real property for a Rent increase in excess of that provided in Section 20-1.105 of this Chapter in order to obtain a Reasonable Rate of Return on property.
4. “Reasonable Rate of Return” shall have the meaning assigned to the term by California and federal courts in precedential published opinions regarding rent stabilization ordinances for residential tenancies. Generally, within the context of a rent stabilization ordinance, the term refers to a rate of just and reasonable return on an owner’s property that is high enough to encourage and reward efficient management, discourage the flight of capital, maintain adequate services, and enable operators to maintain and support an owner’s credit status, but not so high as to defeat the purpose of curtailing excessive Rents and Rental increases.
5. “Rent” shall mean all periodic payments and all nonmonetary consideration, including, but not limited to, the fair market value of goods and services rendered to or for the benefit of the owner under an agreement concerning the use or occupancy of residential real property, including, but not limited to, all payment and consideration demanded or paid for parking, pets, furniture, and subletting.

20-1.105 Stabilization of Rent.

1. Upon the effective date of this Chapter, no owner of residential real property shall charge Rent in an amount that exceeds the sum of the Base Rent plus any lawful Rent increases implemented pursuant to this Chapter.
2. Annual Allowable Rent Increase.
   1. The Annual Allowable Rent Increase shall be equal to sixty percent (60%) of the percentage increase in the Consumer Price Index (All Urban Consumers, San Francisco-Oakland-Hayward region, or any successor designation) rounded to the nearest one-tenth of a percent, or 5%, whichever is lower.
   2. More than one Rent increase within a twelve (12) month period is prohibited, unless approved by a Fair Return Petition pursuant to this Chapter or required by State law.

20-1.106 No Direct Charge for Utilities. A residential property owner may not charge a tenant for utility charges in addition to Rent. In order to be paid by a tenant, the utility service must be separately or individually metered and the utility account must be registered to the tenant and not the residential property owner.

20-1.107 Reasonable Rate of Return. The Annual Allowable Rent Increase is found and determined to provide a Reasonable Rate of Return on property. Notwithstanding the foregoing, any owner of residential real property who contends that the Annual Allowable Rent Increase prevents the owner from receiving a Reasonable Rate of Return on property may file a Fair Return Petition to increase the amount of Rent pursuant to the provisions in this Chapter.

20-1.108 Fair Return Petition for Rent Increase.

1. An owner of residential real property may petition for a Rent increase in excess of the Annual Allowable Rent Increase in order to obtain a Reasonable Rate of Return on the owner’s property.
2. A Fair Return Petition shall be on a form prescribed by the Planning Director or designee. Within five (5) calendar days of submitting a Fair Return Petition to the Town, the owner shall send a copy of the petition to the applicable tenant(s) by first class U.S. mail and promptly provide proof of such mailing to the Town. The tenant(s) will then have thirty (30) calendar days from the date of mailing a copy of the petition to reply or provide additional materials to the Town in response to the Fair Return Petition. All Fair Return Petitions pertaining to tenants in the same building will be consolidating for hearing.
3. There is a rebuttable presumption that the Annual Allowable Rent Increase provides owners with a Reasonable Rate of Return on property. The owner has the burden of proof to rebut this presumption and show that a further increase in Rent is necessary to provide a Reasonable Rate of Return. The owner shall provide at his/her/their sole cost and expense, all documentation requested by the Planning Director or designee, or Planning Commission as applicable, to establish that the requested increase in Rent is necessary to provide a Reasonable Rate of Return on property including, but not limited to, an independent financial report and verified financial data.
4. The owner of residential property shall pay all applicable fees as established by Town Council resolution to file a Fair Return Petition.
5. In reviewing a Fair Return Petition, the Planning Director or designee shall consider relevant factors including but not limited to the following:
   1. Changes in the Consumer Price Index for All Urban Consumers in the San Francisco Oakland-Hayward, CA Area published by the Bureau of Labor Statistics.
   2. The length of time since the last determination on a Fair Return Petition, or the last Rent increase if no previous Fair Return Petition has been made.
   3. The completion of any capital improvements or rehabilitation work related to the residential real property specified in the Fair Return Petition, and the cost thereof, including materials, labor, construction interest, permit fees, and other items deemed appropriate.
   4. Changes in property taxes or other taxes related to the subject property.
   5. Changes in the cost of property-related insurance for the subject property.
   6. Changes in the Rent paid by the landlord for the lease of the subject property.
   7. Changes in the utility charges for the subject property paid by the owner, and the extent, if any, of reimbursement from the tenants.
   8. Changes in reasonable operating and maintenance expenses.
   9. The need for repairs caused by circumstances other than ordinary wear and tear.
   10. The amount and quality of services provided by the owner to the affected tenant(s).
6. A Fair Return Petition shall be decided by the Planning Director or designee within sixty (60) calendar days from the date said petition has been deemed complete, including proof of service to tenant(s), unless such a decision cannot be made within this time frame due to reasons beyond the Town’s control, including but not limited to, failure to receive requested information. The decision shall be emailed and sent by first class U.S. mail with proof of mailing to the property owner, the property owner’s designated representative(s) for the Fair Return Petition, if any, the applicable tenant(s), and the designated representative of the tenant(s), if any.

20-1.109 Appeal of Fair Return Petition for Rent Increase.

1. The property owner and/or affected tenant(s) may appeal the Fair Return Petition decision of the Planning Director or designee to the Planning Commission within thirty (30) calendar days of the mailing of the Planning Director’s or designee’s decision. The Planning Commission shall review the petition de novo pursuant to the factors in Section 20-1.108(e) of this Chapter. The Planning Commission may reverse, uphold, or modify the Planning Director’s or designee’s decision.
2. The Planning Commission shall consider an appeal at a noticed public meeting within sixty (60) calendar days of receiving such appeal, unless such consideration cannot be made within this time frame due to reasons beyond the Town’s control, including but not limited to, failure to receive requested information.
3. The Planning Commission shall make a final decision in writing within thirty (30) calendar days of the closing of the appeal hearing unless such a decision cannot be made within this time frame due to reasons beyond the Town’s control, including but not limited to, failure to receive requested information. The appellant shall pay a fee as established by Town Council resolution. Notwithstanding any provision contained in the San Anselmo Municipal Code, the decision of the Planning Commission shall be the final administrative decision of the Town with no right of review by the Town Council.
4. The party appealing the Fair Return Petition decision shall pay all applicable fees as established by Town Council resolution.

20-1.110 Exemptions. The provisions of this Chapter regulating the amount of Rent that a residential real property owner may charge shall not apply to the following:

1. Residential real property that has a certificate of occupancy issued after February 1, 1995, pursuant to the Costa-Hawkins Rental Housing Act (Cal. Civil Code sections 1954.50-1954.535) and any other provisions of the Costa-Hawkins Rental Housing Act or other law addressing exemptions.
2. Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Cal. Health and Safety Code section 50093 or comparable federal statutes.
3. Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
4. Residential real property that is alienable, separate from the title to any other dwelling unit, including single-family residences, condominiums, and townhomes.
5. A unit in a hotel, motel, inn, tourist home, or rooming and boarding house which is rented primarily to transient guests for a period of less than 30 days, and other transient occupancies as defined in Cal. Civil Code section 1940(b).
6. A unit in an institutional facility, including a hospital, medical care facility, residential care facility, asylum, group home for seniors or the disabled; a rental unit in a transitional housing program that assists homeless persons as defined in Cal. Civil Code, Section 1954.12; a convent or monastery owned and operated by a religious organization; or a fraternity or sorority house affiliated with a college or university.
7. A unit that the owner or the owner’s immediate family occupied as their principal place of residence at the beginning of the tenancy so long as the owner or the owner’s immediate family continues in occupancy.
8. A unit permitted as an Accessory Dwelling Unit (ADU) or Junior Accessory Dwelling Unit (JADU).
9. Two (2) or fewer residential rental units located on a parcel or lot, or contiguous parcels or lots, under common ownership.

20-1.111 Rent Increase Ineffective. No Rent increase shall be effective if the owner:

1. Fails to substantially comply with all provisions of this Chapter, including but not limited to the failure to provide notices as required by this Chapter;
2. Fails to maintain the residential real property in compliance with Cal. Civil Code sections 1941.1 et seq. and Cal. Health and Safety Code sections 17920.3 and 17920.10; or
3. Fails to make repairs ordered by the Town or court of competent jurisdiction.

20-1.112 Notice Requirements.

1. An owner of any residential real property subject to this Chapter shall, on or before the date of commencement of a tenancy, give the tenant written notice that must include the following information:
   1. The existence and scope of this Chapter 20-1 of the Town Municipal Code; and
   2. The tenant’s right to respond to any Fair Return Petition filed with the Town by the owner pursuant to this Chapter.
2. No Rent increase shall take effect until the requirements of this Chapter have been met and the required notice to increase Rent has been given to the tenant(s). As part of any notice to increase Rent, an owner must include the following:
   1. Notice of the existence of this Chapter 20-1 of the Town Code; and
   2. The tenant’s right to respond to any Fair Return Petition filed with the Town by the owner, and the right to appeal the decision of a Fair Return Petition to the Planning Commission.
3. When the owner and tenant have entered into a written lease, the owner must give notices to the tenant in the language used in the lease. When the owner and tenant have not entered into a written lease, the owner must give notices to the tenant in the language that the owner and tenant used to negotiate the terms of the tenancy. Notwithstanding the foregoing, the owner must give notices to the tenant in the primary language spoken by the tenant, if known to the owner.

20-1.113 Enforcement.

1. It shall be unlawful and a public nuisance for any person or legal entity to violate or fail to comply with any provision of this Chapter. The Town Attorney is authorized to abate violations and to enforce the provisions of this Chapter and all implementing regulations pursuant to the San Anselmo Municipal Code, civil action, injunctive relief, and/or any other proceeding permitted by law. All remedies are cumulative.
2. Any property owner who intentionally demands, accepts, or retains any payment of Rent in violation of this Chapter shall be liable in a civil action to the tenant from whom such payment is demanded, accepted, or retained for damages in the sum of three (3) times the amount that exceeds the maximum that could be lawfully demanded, accepted, or retained together with reasonable attorneys’ fees and costs as determined by a court of competent jurisdiction.

20-1.114 Fees and Administrative Regulations.

1. The Town Manager may adopt administrative procedures and regulations to implement the provisions of this Chapter.
2. Property owners subject to this Chapter shall pay fees as established by Town Council resolution in order to fund the Town’s cost to implement and enforce the provisions of this Chapter.

SECTION 6. Severability.

The Town Council hereby declares every section, paragraph, sentence, clause, and phrase is severable. If any section, paragraph, sentence, clause or phrase of this Ordinance for any reason is found to be invalid or unconstitutional, such invalidity, or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, sentences, clauses or phrases.

SECTION 7. Effective Date.

This Ordinance shall go into effect thirty (30) days from its adoption. Prior to the expiration of fifteen (15) days of adoption, this Ordinance or a summary thereof pursuant to Government Code section 36933, shall be published at least once in a newspaper of general circulation, along with the names of the members of the Town Council voting for and against its adoption.

INTRODUCED AND ADOPTED the foregoing ordinance was introduced at a regular meeting of the San Anselmo Town Council on the 26th of March 2024 and was adopted at a regular meeting of the San Anselmo Town Council on April 9, 2024, by the following vote:

AYES: Councilmember: Fineman, Vice Mayor Kullaway, Burdo
NOES: Councilmember: Colbert, Mayor Burke
ABSENT: Councilmember:
ABSTAIN: Councilmember:
RECUSED: Councilmember:

APPROVED:

s/EILEEN BURKE
Mayor

ATTEST:

s/SERGE AVILA
Town Clerk