Eager to learn more about the city's evolving rental landscaping, the Palo Alto City Council enthusiastically backed on Monday the creation of a registry that will require all local landlords to provide information about rents, vacancies and evictions at their properties.
In doing so, however, it left one critical question outstanding: What should the city do with the data once it's collected?
Council members generally agreed that the information in the new rental registry will be valuable when it comes to crafting new policies to assist tenants, who now make up about 47% of the city's population. When the program rolls out next summer, landlords would be required to register their properties and to then notify the city after significant "events" such as evictions and unlawful detainers, legal actions that landlords can deploy to get tenants to leave.
But when it comes to enforcement, city staff have proposed a relatively light touch. Citing insufficient staffing, Planning Director Jonathan Lait said the current plan is to only enforce the registration requirement. This could mean imposing daily fines on landlords who fail to register and who repeatedly ignore the city's notifications.
The city would not, however, enforce violations of renter-protection laws, Lait said. That, he said, would be left up to private rights of action in civil court.
"We believe it's a substantial amount of effort to begin an enforcement mechanism of our rental-protection programs," Lait said, noting that it would require the creation of a new regulatory framework.
Some council members, however, argued that this isn't good enough. If knowledge is power, as Francis Bacon supposedly claimed, Palo Alto should use its new power to crack down on landlords who illegally hike rents or evict tenants, as evidenced by the data in the registry.
Vice Mayor Greer Stone and Council member Julie Lythcott-Haims both fell into this camp and made the case for more enforcement. Stone, who is a renter, emphasized the existing power imbalance between landlords and tenants and said he was uneasy about having the city simply look past violations.
"I struggle with the idea that we're just kind of going to sit back, see that, and we're not going to be able to do anything with it," said Stone, whose motion to advance the rental registry advanced by a 6-1 vote, with Council member Greg Tanaka dissenting.
Lythcott-Haims similarly pushed back against the minimalist approach to enforcement proposed by planning staff. She was undeterred even after City Attorney Molly Stump suggested that enforcing disputes between tenants and landlords would effectively require the creation of a new unit of city government.
"We know staff is maxed out, we know this is a brand-new thing and yet if we were really to put our money where our mouth is and properly address the concerns that this rental registry is designed to facilitate an understanding of, we are going to need to allocate staff and budget resources to this," Lythcott-Haims said.
Others were less gung-ho about enforcement. Council member Ed Lauing argued that the goal of the rental registry should be to obtain information. Without understanding the local rental market, it's hard for the city to develop an accurate staffing model for enforcing rental protection laws, he argued.
While the city may discover other things over the course of the exercise — such as, for instance, the existence of old accessory-dwelling units that don't comply with current building codes — Lauing said he would not support going after landlords in these types of situations.
"I'm not interested in going after people who were not in compliance with something 40 years ago," Lauing said.
The council had focused on information rather than enforcement two years ago, when it identified the creation of a rental registry as its top priority when it comes to tenant protections. Housing advocates, including members of local groups such as Palo Alto Forward and the Palo Alto Renters Association (which is now being absorbed by Palo Alto Forward) and the nonprofit SV@Home, have also consistently highlighted the data-gathering component of the program as they lobbied for its implementation.
Amie Ashton, executive director of Palo Alto Forward, suggested that the registry will help the city make more informed housing policy decisions.
"Without good data we can't have good policy," Ashton said Monday.
Others were far less excited. Numerous landlords and property managers spoke out against the registry on Monday, characterizing it as onerous and unnecessary. The new program would require them to fill out a four-page questionnaire and pay an annual fee of about $50 (the fee would be waived in the first year).
Leannah Hunt, a local Realtor, suggested that the registry is unnecessary because staff already have access to copious public records with information about rental properties. She lamented the fact that housing advocates are treating the rental registry would be some kind of a "panacea" for high housing costs.
Marcus Wood, a local property manager, took issue with the the idea that landlords in Palo Alto are taking advantage of tenants. He said that in his 10 years of managing about 200 apartments, he only had two evictions, in both cases for tenants who didn't pay their rent.
"The intent sounds good but the registry really won't make any difference," Wood said. "The program seems to be based on anecdotes about certain landlord transgression and the need to protect one or two helpless tenants.
"The city seems to be promoting a solution in search of an unidentified problem."
Tanaka shared this view and argued that the rental registry may deter some would-be landlords from renting out their homes, apartments or accessory dwelling units. The city should not implement broad policies without clearly demonstrating the necessity, he argued.
"Let's not rush into regulations that might have unforeseen negative impacts on our housing market," Tanaka said. "I believe this proposal will actually decrease the rental stock in our community and make the homeless issue even worse."
The rest of the council, however, strongly supported the new registry. Mayor Lydia Kou, a Realtor, noted that listings on services like Zillow and MLS (Multiple Listing Service) offer only partial information, particularly when it comes to rentals.
"I do believe having this rental registry will provide the city with a lot of information and I think it's necessary given the climate we're faced with, especially with the housing (mandates) that ask us for more and more production of housing but it really doesn't trickle down to more affordability," Kou said.
Council members also supported Lait's proposal to gradually roll out the registry by initially focusing only on properties with three or more apartments. This means limiting the program in its first two years to the roughly 300 property owners who own about 70% of the city's rental stock. Those who own one or two rental units wouldn't be required to register until the third year of the program.
The council's Nov. 27 vote directed Lait to return at the end of the second year to evaluate the program's expansion to the smaller properties.
Lait said starting with the larger properties (and the relatively few property owners) will allow staff to work through all the program's kinks before the broader rollout to the many property owners with one or two units.
"It's a new program. While we have some familiarity with some registry programs such as the business registry, we believe there will likely be a learning curve as we adapt to the system," Lait said. "We have every intention of it working smoothly from the outset but we also suspect that there may be some glitches or some technological issues that we need to sort out."
The council also directed planning staff to survey the enforcement mechanisms that other cities use to encourage compliance with renter-protection laws. In the meantime, Council member Vicki Veenker suggested that the registry itself may deter some landlords from flouting rental laws.
"It might be self-enforcing to some degree," Veenker said. "Even if we move someday toward enforcement, hopefully there will be less instances that we have to deal with."
Comments
Registered user
Community Center
on Nov 28, 2023 at 9:06 am
Registered user
on Nov 28, 2023 at 9:06 am
Some council members are proposing and enforcement arm before any data suggesting if there actually is a problem. The rental registry request came from a city council colleagues memo about the Presidents Hotel. The idea that a rental registry would have stopped the eviction of renters at the presidents hotel is laughable. That appeared like a shady deal between City Manager Jim Keene and the developer. I bet you the number one reason going forward for evictions is not paying rent and developers redeveloping properties.
Registered user
Midtown
on Nov 28, 2023 at 9:14 am
Registered user
on Nov 28, 2023 at 9:14 am
How about adding a renter's registry. We already know all the entities that own property. So let's have a registry of all the renters. Charge renters $25 per year. This can be used to verify residency for the school district. The city can keep track of renters that skip out not paying rent.
/marc
Registered user
Woodside
on Nov 28, 2023 at 10:40 am
Registered user
on Nov 28, 2023 at 10:40 am
The more difficult and expensive you make it to be a landlord, the more expensive and difficult it becomes to be a tenant. Economic laws always apply, regardless of supposed good intentions.
The chance that Palo Alto will do anything useful and productive with this information is vanishingly slim. It will probably be used to further more socialist nonsense that will further restrict housing availability.
Registered user
Barron Park
on Nov 28, 2023 at 1:02 pm
Registered user
on Nov 28, 2023 at 1:02 pm
Any registry would contain highly sensitive data. A registry must be compliant with data security and privacy regulations, and the relevant regulations would likely extend beyond CCPA since citizens of EU, the KSA and so on can be landlords/tenants.
Registered user
Leland Manor/Garland Drive
on Nov 28, 2023 at 4:11 pm
Registered user
on Nov 28, 2023 at 4:11 pm
Chairman for life Xi would be very proud of the Palo Alto City Council for enacting the Rental Registry to track the renters and apartments. What kind of information the Council wants to track – vaccination status, where employed, race, religion, adjusted gross income, sexual preference, banking data, education levels, arrest records, what guests visit the apartment and more. All stored in city servers or the cloud where it can be easily hacked.
And then we can have a block monitor to report to the Council on all of the activities for each apartment in their assigned block. Xi will be happy with our socialism progress.
Registered user
Community Center
on Nov 28, 2023 at 11:55 pm
Registered user
on Nov 28, 2023 at 11:55 pm
What is this?
The People's Republic of Berkeley?
Next up: rent control.
Registered user
Mayfield
on Nov 29, 2023 at 11:09 am
Registered user
on Nov 29, 2023 at 11:09 am
I am a renter. I am for the registry. I am also invested in our community as a renter, a parent volunteer, an employee and one who spends hard earned money here. I believe in rent stability. I am taxed to just not with private property. I'd like my comment to be represented here, as a renter and not a SFHO.
Registered user
Barron Park
on Nov 29, 2023 at 4:56 pm
Registered user
on Nov 29, 2023 at 4:56 pm
My family has rental property in Palo Alto, and I support gathering data through a registry. The suggestions that reporting requirements or a $50 annual fee would deter property owners from renting out their properties, or that passing on these fees to the renters would significantly affect affordability, are ludicrous. Rental rates are insanely high: even 1 bedroom, 1 bath houses are listed on zillow at $3k/month, so a $50 fee might increase rent by at most 0.1%, and no property owner is going to leave their house empty, leaving such sums on the table, to avoid filling out a 4 page form.
I think the council is making the right choice to defer the option of enforcement and focus instead on data collection. Otherwise the greater risk is people not responding honestly and the city getting false or incomplete data.
I'm also dubious of the notion that there's rampant renter abuse, given renter protection laws in place, but I admit that I don't have data to back up that belief. A registry will give all of us more data to make such determination. The comment above for a renter registry seems facetious, but the same, without a fee, would be useful to get information from both sides of the owner/renter relationship, and could serve as a statistical check on the owner-only provided data.
Registered user
Crescent Park
on Nov 29, 2023 at 5:51 pm
Registered user
on Nov 29, 2023 at 5:51 pm
This is more process with neither problem nor purpose. Does this always have to be the Palo Alto way?
Council and the advocates should just get swivel chairs and fidget-spinners.
Registered user
another community
on Nov 29, 2023 at 7:59 pm
Registered user
on Nov 29, 2023 at 7:59 pm
The landlord registry and its recent companion piece serve no purpose and they are unenforceable. The landlord registry was implemented over 20 years ago and hasn't got a foothold, and neither will this proposal. I hardly think Palo Alto has the cojones to test the waters in federal court after they get sued for depriving landlords and tenants their right to privacy. Wake me up in 20 years. PA will still be in the "planning phase" of this misguided trip to nowhere.
Registered user
Midtown
on Dec 1, 2023 at 9:25 am
Registered user
on Dec 1, 2023 at 9:25 am
How about going for the low hanging fruit of housing currently unavailable to long term renters—the plethora of AirB&B and short term rental properties? The City knows these exist, and accepts the violation of ordinances prohibiting such uses. Why is that?
Meanwhile some greedy property owners rake in far more cash from short term rentals than from providing stable housing for folks who want and need to live here for work, for schools, for community. Every neighborhood is impacted. Neighbors know which houses are being used as short term vacation/business rentals. Report these to 311 as a violation of ordinance even without a wild party! Ask Council to address this issue!
I am NOT objecting to homes occupied by the owner which rent out space to guests or visitors. That seems like a reasonable compromise to help residents afford housing in this expensive city.
Registered user
Adobe-Meadow
on Dec 1, 2023 at 12:02 pm
Registered user
on Dec 1, 2023 at 12:02 pm
We have a problem with commentators who just graduated from college and lived in a student resident hall. Their view of an apartment is minimal. That view does not translate to a family with children. Young workers from other countries think a one room apartment is the soul saver. But are we designing our long-term goals for housing around young people who think a tiny apartment which is bigger then that they lived in before is good?
There needs to be transitional housing for the young workers who are single as well as older people with families and children. Then we have the older people who are empty nestors and looking to live in a senior community. We need to make sure we have a balance.