Council to Consider Advancing $500,000 to Fund Rental Board

The City Council will consider advancing up to $500,000 from the City’s General Fund for start-up costs related to the initiation of the Pasadena Rental Housing Board. 

The rental board administers and enforces Measure H, the rent control charter amendment approved by 54% of Pasadena voters in November. 

The new law requires local landlords to roll back rents to May 2021 rates.

It also limits local rent adjustments annually to 75% of the percentage increase in the Consumer Price Index for multifamily rental units built before February 1, 1995, and prohibits evictions from rental units, except for just cause evictions based on 11 criteria.

Pasadena City Charter Article XVIII requires the creation of a Rental Housing Board.

The board is comprised of eleven members and two alternates that are to be compensated per hour for meetings attended. The City is required to advance the necessary funds to ensure the effective implementation until the Board has collected enough fees to support implementation. 

“Since the City is required to advance funds to ensure implementation, which would include paying Board members and providing legal and administrative support until the Board gets up and running, the recommended action includes approving the advance of up to $500,000 in initial funding.” 

Accounting for the Board’s operations will be managed in its own fund within the City’s accounting structure and the advance from the City’s General Fund will be done as needed based on expenditures.

The Board is required to establish a budget for the reasonable and necessary implementation of the Charter provisions and City staff will return to the Finance Committee with regular updates on the status of the advance.