S.J. landlords face big fines for violations

Maximum penalty for tenant protection violations is $10,000

In an effort to ensure that landlords abide by the tenant protections that the city has worked years to establish and refine, San Jose officials will impose new fines on those who defy the rules.

The fines, which will take effect Jan. 1, range from $500 for violations like failing to register a rental unit with the city to $10,000 for failing to provide qualifying tenants with relocation assistance funds when a landlord decides to take a unit off of the market.

“Given the incredible challenge of finding housing that is affordable, the best way that we can combat homelessness is to keep people housed where they are,” Mayor Sam Liccardo said in an interview. “And we know that sensible, balanced enforcement with some teeth will help families that might be vulnerable.”

The citations apply to violations of the city’s apartment rent ordinance, which limits rent increases for apartments built before 1979; the tenants protection ordinance, which requires just cause for notification of termination for apartments; and the Ellis Act Ordinance, which requires notifying tenants and providing them with relocation benefits when a landlord plans to demolish a building.

The rates of fines were chosen based on four factors — the type and severity of the violation, deterrence against future violations, whether the violation affected an entire complex or individual households, and the escalation of fines for repeat violations. The violations also were weighed on whether they were curable or uncurable offenses.

Landlords who commit a firsttime violation of the rent ordinance or tenant protection ordinance that cannot be cured — for instance, failing to provide the required advanced notice to tenants of plans to terminate the rental of apartments — will be given the opportunity to attend a compliance class as a warning instead of paying a fine initially.

Landlords who are cited will be able to request a hearing to dispute the fine.

Tim Beaubien, a government affairs associate for the Santa Clara County Association of Realtors, thanked the staff for adding the compliance course step, saying that without it the fines would discourage landlords from staying in the market.

“( Our organization) does not aim to protect any repeat violators of the ordinances enacted by the city. We do however fight for the rights of first- time violators struggling to keep track of and make sense of the several complex rules and regulations consistently levied on their properties,” Beaubien told the council. “… Education has been and still will continue to be the best tool to reach maximum compliance .”

Before Tuesday night’s decision, the city had to go through the court process to penalize a landlord who violated the tenant protection ordinances. But the new process run by the city will make enforcement easier and more efficient, staff said.

In a presentation before the City Council Tuesday night, staff members stressed that the intent of imposing the fines was not to generate revenue but to encourage compliance.

Nadia Aziz, directing attorney related to housing for the Law Foundation of Silicon Valley, wrote in a statement to the council that citations were a useful tool to enforce tenant protections and ensure that landlords comply with the law.

“In most cases where we assist tenants, educating the landlord about the law results in the landlord complying with the law,” Aziz wrote. “However, in those cases where landlords refuse to comply, the consequences can be devastating for tenants, who may be forced out of their home without a relocation payment or without good reason. Many tenants are unable to access Courts to be able to enforce these important protections against their landlords.”