Dear Burbank housing provider,

Last night, Wednesday 10.15, city council met to discuss the recent study sessions and surveys conducted over the last few months throughout the community. The session that ended at midnight last night, council directed staff to come back with two options in terms of implementing a rent control measure.

Please note that both options include a rental registry format similar to the city of Los Angeles. Owners will need to list any vacancies how much they’re charging for rent and properties that they own along with other detailed information about tenants etc.

Option #1.  The more heavily discussed version would cap rents at 4% or 60% of CPI which would equate to about 2.2% in today’s market. Almost completely disregarding the astronomical rise in operational expenses, it is clear that they will be choosing an option to have landlords subsidized rents on top on top. After the city of Pasadena adopted measure H which capped rents at 75% of CPI, the overall market lost approximately 14.2%in values compared the year prior and saw a tripling of inventory levels. The forceful implementation of placing pricing controls has a multi-pronged effect. In addition to the immediate impact of valuations, owners will become less likely to make discretionary capital improvements, the quality of the assets will in-turn slowly deteriorate, tenant profiles will change and crime will increase.

Option #2.  Would look at adopting something similar to the model currently being utilized in Glendale. Glendale has a 7% soft rent cap which means that anything above that number would trigger a relocation assistance package to tenants equal to 3 months or rent or up to 8 months for qualified tenants.  Burbank council members mentioned that the 7% in Glendale is too high and that the soft cap could be easily lower.

This is not about profit or margins etc, this is a fight to maintain power and control over your assets. One speaker presented a video clip of a council member and in his words saying  “ I would like to obliterate ownership of rental housing “

We invite you to contact our team to discuss this in more color and or help advise on current and future equity valuations of your assets.

P.S. – The Alexanians are just the #1 brokerage team in Glendale & Burbank-We are not attorneys, tax advisors or policy makers.

This has been only our interpretation for general discussion purposes however you are instructed to consult with the city manager and your tax & legal advisors.

Most market share

in Burbank & Glendale

52 units | $22,440,000 current

Please reach out if we can be helpful in advising you on your equity position in today’ market and exploring 1031 exchange solutions.

February 2, 2024

Burbank City Council seems determined to supersede State Law and find any way to do so. Unannounced to every owner, broker, or industry specialist, who attended the meeting, there was an “ad hoc discussion” to give council direction on rent control, etc.

Staff entertained suggestions from advocates to cap rents at 2%, creating a “standardization” of ownership, requiring penalty of perjury forms, etc.

Please read the below report and more importantly, SHOW UP ON FEBRUARY 13, 2024 at the city council meeting at 6:00 pm to oppose the council in possibly directing staff to bring back a rent control ordinance. 

Burbank Staff report on Landlord & Tenant Ad Hoc meeting January 18, 2024

DISCUSSION

The “Landlord-Tenant Roundtable Small Group Discussion” (Ad Hoc Group) was held on Thursday, January 18, 2024. Selected by Vice Mayor Perez and Council Member Takahashi, five tenant and five landlord representatives were invited to participate in discussion on potential solutions and ideas in several areas including evictions, rent and cost increases, and landlord and tenant responsibilities. Vice Mayor Perez and Council Member Takahashi observed and listened to the discussion. Three members of the public, who were not part of the invited Ad Hoc Group, attended and listened, but did not participate. The selected landlords and tenants were divided into two groups, with a mix of landlords and tenants in each group. These groups participated in three exercises facilitated by staff as summarized below. Groups were rearranged for the second exercise to provide all participants an opportunity to share their opinions with different participants. The final exercise focused on prioritizing solutions and provided all participants an opportunity to voice individual opinions as summarized later in the report.

Exercise No. 1 – Concerns for both Landlords and Tenants

The first exercise was the opportunity to voice and develop a set of concerns (Attachment 2). Both groups raised concerns during the discussion with overlapping themes. Staff has summarized these five overlapping themes for purposes of this report in no order of priority. These five themes could be utilized in a future implementation plan.

Summary of Concerns in five themes:

1) Enforcement of laws and fairness in process and eviction of long-term tenants

(No-Fault Evictions).

2) Corporate housing in lieu of “Mom and Pop” landlords.

3) High rent increases and balancing rent stability (tenants) and costs (landlords).

4) Education needed on landlord and tenant responsibilities and resources; and

5) Lack of communication between landlords and tenants.

It is important to note that groups only had 30 minutes for this exercise and were asked to prioritize concerns to report on only five concerns even if more than five concerns were identified during the discussion. Therefore, there are likely more concerns that were not voiced during the discussion. As the community outreach process continues for the proposed second step report, additional concerns and solutions may be identified.

Exercise No. 2 – Possible Solutions to Concerns

In the second exercise, the groups were asked to brainstorm creative solutions without considering feasibility of the solutions. This exercise generated more discussion than the previous exercise as there were several conflicting ideas group members did not all agree on. A list of the solutions as stated by the groups is attached (Attachment 3). The summary below highlights some of the solutions for each concern identified in the first exercise (similar solutions were combined and in some cases a solution was recategorized). Solutions that may not be legally possible were not included in the summary.

1) Concern: Enforcement of laws and fairness in process and eviction of long-term tenants (No-Fault Evictions)

Proposed Solutions:

1. Access to information and education on laws for both landlords and tenants.
2. Reduce complexity of laws.
3. Carve out rules for government orders (clarity and transparency to both parties).
4. Letter of enforcement from City Attorney’s office for non-compliance with laws.
5. Addendum to lease with a summary of tenant’s rights and responsibilities with supplemental resource sheets.
6. Payment for relocation regarding renovation.
7. Disallow eviction for substantial remodel.
8. Provide “right to return” after renovation.
9. More time to leave (four months) and more money to leave (three months fair market rent).
10. Require a penalty of perjury form (example: for owner move-in).

2) Concern: Corporate housing in-lieu of “Mom and Pop” landlords

Proposed Solutions:

1. Require a license to become a housing provider in the City.
2. Incentivize smaller landlords to keep their properties.
3. Expansion of Burbank Housing Corporation development.
4. Create land trusts or co-operative housing options.
5. Extension of AB 1482 or local laws to corporate owned properties (differentiate “Mom and Pop” landlords).

3) Concern: High Rent Increases; Balancing rent stability (tenants) and costs (landlords)

Proposed Solutions:

1. Increase housing supply especially affordable housing.
2. City to provide resources for tenants who qualify for subsidized rent.
3. Provide an emergency rent/assistance fund.
4. Rent cap at 2% a year.
5. Possible rent board.
6. Capping rent increase with vacancy de-control.
7. Petition process to approve rent increase above an approved rent cap.

4) Concern: Education needed on landlord and tenant responsibilities and resources

Proposed Solutions:

1. Qualified staff to provide answers to landlords and tenants.
2. City to have orientation & videos to provide comprehensive information on legal rights.
3. Educating landlords and tenants regarding programs and policies.

5) Concern: Lack of communication between landlords and tenants

Proposed Solutions:

1. Hire qualified City staff or a system to mediate between landlords and tenants.
2. Strengthen Landlord Tenant Commission with a licensed mediator.

Exercise No. 3 – Prioritizing Solutions

Since feasibility was not a consideration during the solution identification process, the third exercise was to identify those solutions that could be prioritized as feasible and most impactful. However, after a lengthy discussion on feasibility versus impact and the group’s concern with knowledge in those areas, the group decided to vote on the listed solutions indicating their support of or opposition to a solution. While a complete list of responses is included (Attachment 4), the list below summarizes the proposed solutions that received “support votes,” and did not receive any “oppose” votes.

1. Access to information and education on laws for both landlords and tenants.
2. Reduce complexity of laws (City to provide comprehensive information to landlords and tenants with pamphlets).
3. Carve out rules for government orders (clarity and transparency to both parties).
4. Letter of enforcement from City Attorney’s office for non-compliance with laws.
5. Addendum to lease with a summary of tenant’s rights and responsibilities with supplemental resource sheets.
6. Payment for relocation regarding renovation.
7. Provide right to return after renovation.
8. Require a penalty of perjury form (example: for owner move-in).
9. Expansion of Burbank Housing Corporation development.
10. Increase housing supply; especially affordable housing.
11. City to provide resources for tenants who qualify for subsidized rent.
12. Qualified staff to provide answers to landlords and tenants.
13. Educating landlords and tenants regarding programs and policies.
14. Hire qualified city staff or a system to mediate between landlords and tenants.

While these proposed solutions did not receive an “oppose” vote, not all solutions were equally supported. In other words, some solutions received two “votes of support” while others received six or more “votes of support.” Critical to the next phase of the process will be analyzing the legality, feasibility, and impact of these supported solutions, as well as additional direction provided by the Council.

Next Steps

As directed by Council, the feedback received during the Ad Hoc Group meeting will be utilized for the development of a proposed Tenant Protection Ordinance. The next step is to present the second step report that addresses options for tenant projections through a comparison of local ordinances, information on the Ad Hoc Group recommended solutions, and a proposed implementation plan.

As staff proceeds with the development of a proposed Tenant Protection Ordinance, information will be posted on the City’s website for the public to access information on the City’s progress; announcements made during Council meetings inviting members of the public to participate in public meetings; and community outreach efforts from staff utilizing a variety of platforms including social and print media to invite community members to participate in the process.

ENVIRONMENTAL ASSESSMENT

This report is not subject to the California Environmental Quality Act (CEQA) under State CEQA Guidelines Section 15060(c)(2), in that the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment, and is further and independently exempt from the CEQA under State CEQA Guidelines Section 15061(b)(3), in that it can be seen with certainty there is no possibility the activity will have a significant effect on the environment. This report to the Council summarizing the discussion on Landlord Tenant Ad Hoc Roundtable Meeting held on January 18, 2024, is statutorily exempt from review under the CEQA because it is a feasibility or planning study for possible future actions that have not yet been adopted or approved (CEQA Guidelines, Section 15262).

FISCAL IMPACT

There is no fiscal impact to the City’s General Fund with this report.

CONCLUSION

The Ad Hoc Group was asked to participate in a discussion on potential solutions and ideas in several areas including evictions, rent and cost increases, along with landlord and tenant responsibilities. The meeting attendees collaborated with each other to develop possible solutions as outlined in this report. While attendees were informed that these solutions may not be adopted, it gave an opportunity for both landlords and tenants to hear both sides and hopefully, bring some clarity on housing issues and concerns to be addressed in a future second step report for a proposed Tenant Protection Ordinance. Staff recommends the “supported” solutions outlined in this report be analyzed for legality,  feasibility, and impact. Staff will include the supported solutions presented during the Ad Hoc Group meeting held on January 18, 2024, for consideration with the second step report and a proposed implementation plan.

To learn more call the Alexanian Apartment Advisors at 818 239-1206 or email info @ alexanianadvisors . com

Burbank Rent Control, 2023

Here we go again!

Despite the residents of Burbank voting over 63% against local rent control measures 2 years ago, the mayor of Burbank is trying to slide it in by way of a city council ordinance.

There was a good turnout last Tuesday to oppose any consideration of an additional level of bureaucracy, in addition, to the fact, there is already a statewide rent control & tenant protections in effect.

A group is forming to ensure Burbank doesn’t incorporate this failed measure that would be a negative impact on the city, on housing providers and ultimately in the long run, the renters

We encourage you to check back on this same website www.burbankrentcontrol.com for updates, and developments concerning the matter. If you would like to learn more, get involved, or offer information, call the Alexanian Apartment Advisors offices at 818 239-1206 or email us at info@alexanianadvisors.com