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Ord 1449 - URGENCY ORDINANCE OF THE TOWN OF LOS GATOS REGULATING THE RENT FOR DWELLINGSORDINANCE NO. 1 449 URGENCY ORDINANCE OF THE TOWN OF LOS GATOS REGULATING THE RENT FOR DWELLINGS The Town Council of the Town of Los Gatos makes the following findings. There is a serious shortage of dwellings for rent in Los Gatos and surrounding communities. Many people who need to live in the Los Gatos area are unable to afford to buy houses and unable to find or afford rental housing. Because of the shortage it is possible for landlords to increase rents substantially above amounts which would yield a reasonable return on investment. Such increases have occurred, and in some instances have forced tenants of small means -- people who have had great difficulty finding other living quarters anywhere -- to leave the Town. The Town Council is considering the questions of whether to adopt a, residential rent control ordinance, and if an ordinance is to be adopted, what form it should take. While the matter of rent control is under consideration further rent increases are likely. Some of the increases would exceed reasonable limits compelling some tenants to leave the Town and imposing hardship on others. A rental emergency exists in the Town, and it is necessary to adopt this ordinance as an urgency ordinance. THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS: SECTION 1 Definition of Rental Dwelling For the purpose of this ordinance, rental dwelling means a building or part of a building used for residence or a mobile home space, but does not mean: 1.1 A single house on a separate lot, a, condominium unit or a town house, 1.2 A hotel room or similar accommodation ordinarily let out for occupancy by the same person or persons for periods of less than 15 days, 1.3 A hospital room, extended medical care facility or similar accommodation where the primary factor in the rental relation- ship is the personal care given to the tenant. SECTION 2. Rent Limit During the period November 20, 1979 through Februa:r..y° 20, 1980 no person may charge more tent for a, rental dwelling than the rent which was in effect on November 1, 1979. SECTION 3 Exemption for Escalation Clauses When a rental dwelling lease in effect before November 1, '1979. contains a specific escalation clause, rent increases provided for by the lease are not forbidden by this ordinance. SECTION 4 Definition of Eviction For the purposes of this ordinance, eviction means any giving up of or departure from a rental dwelling by a tenant at the instance of the landlord or his representative regardless of the cause. SECTION 5. Exemption for Vacated Dwellings When a rental dwelling is voluntarily vacated and the landlord - tenant relationship is terminated by the tenant -- that is, when the tenant gives up possession for a reason other than eviction -- the rent limit provisions of this ordinance do not apply, and the rental dwelling may be relet. -2- 1115 -79j SECTION 6 Exemption for Limited Class of Dwellings on Sale If a, rental dwelling is the subject of a binding contract of sale in effect on November 19, 1979, and if the rent for the dwelling was not raised during the period November 19, 1978 through November 19, 1979, when the sale occurs the new owner may increase the rent but not by more than 15 per cent of the rent in effect on November 19, 1979. SECTION 7 Penalty Violation of this ordinance is a misdemeanor. SECTION 8 This ordinance is an urgency ordinance and is effective immediately on its adoption. If this ordinance is determined in a final adjudication to be ineffective as an urgency ordinance, it is nevertheless introduced and readopted as a regular ordinance of the Town, effective 30 days after its second adoption. SECTION 9 Toe Town Clerk shall cause this ordinance to be published twice, once within 15 days after its initial adoption and once within 15 days after its second adoption, in a newspaper of general circulation published and circulated in the Town. Introduced as a regular ordinance and adopted as an urgency -3- 11- 16 -79j ordinance of the Town of Los Gatos at a regular meeting of the Town Council on November 19 , 19 79 AYES: COUNCILMEMBERS Ruth Cannon, Thomas J. Ferrito Mardi Gualtieri and Peter Siemens NOES: COUNCILMEMBERS John B. Lochner ABSTAIN: COUNCILMEMBERS None ABSENT: COUNCILMEMBERS None SIGNED ATTEST: C1er , Town of Los Gato if yor, Town of Los Gatos Adopted as a, regular ordinance of the Town of Los Gatos at a regular meeting of the Town Council held on December 3, 1979 by the following vote: AYES: COUNCILMEMBERS Ruth Cannon., Thoma J. Ferrito, Mardi Gualti Peter W. Siemens and John B. Lochner NOES: COUNCILMEMBERS None ABSENT: COUNCILMEMBERS None SIGNED: L L %� X . C . Ma v r of the`Tdwn of Lbw Gatos ATTEST - Clerk, 'Town. of Los Ga.to -4- 11- 16 -79j