Larkspur rent-control ordinance opponents seek referendum

A referendum petition has been filed challenging Larkspur’s rent-control ordinance.

An attorney filed the petition on behalf of Lauren Baxter. Shannon O’Hare, the city clerk, said the document was delivered to the county on Sept. 28.

A preliminary review found enough unverified signatures to possibly qualify the referendum for the ballot, but the petition must still undergo county review, O’Hare said.

If the referendum qualifies for the ballot, the City Council must schedule a discussion at the its next meeting, O’Hare said. The council could place the referendum on the ballot for an election or might choose to rescind the rent-control ordinance.

The issue will likely return to the council this month or next.

In September, Larkspur became the second municipality in Marin to adopt a rent-control ordinance, following Fairfax. The City Council capped rent increases at 5% plus inflation, or 7%, whichever is lower.

The rent-control ordinance was intended to take effect on Oct. 6, but it was postponed pending the conclusion of the referendum process. The ordinance would have been retroactive to the base rent as of May 8.

The ordinance in Larkspur was considered stronger than state Assembly Bill 1482, or the Tenant Protection Act, which sets the bar at 5% plus inflation, or 10%, whichever is lower. The state law expires on Jan. 1, 2030.

Larkspur Councilmember Catherine Way cast the dissenting vote, arguing that rent control should be considered by the voters.

Lynda Roberts, the county registrar of voters, said the office is “close” to completing the signature verification and will likely return the petition in the coming week.

The referendum petition includes 1,102 signatures, Baxter’s lawyer, Hilary Gibson, said in a letter to the city. Gibson and Baxter did not return requests for comment.

The petition was paid for by Hummingbird Hill LP, according to the referendum website. Hummingbird owns apartments that had an assessed value of about $11 million in the 2019-2020 fiscal year, placing it among the top 20 property tax sources in the city, according to a staff report.

The rent-control ordinance also establishes a petition process for landlords seeking a “fair rate of return” that justifies an increase above the ceiling, but landlords cannot exceed the state rent increase cap.

The rent-control ordinance also allows the city to charge a fee to administer the program. The city planned to create a rental registry program, requiring landlords to make annual filings that would be maintained in a database. The web page would include information for both tenants and landlords.

The rent-control law complemented a just-cause-for-eviction ordinance, which is also retroactive to May 8 and expires Dec. 31, 2030. That ordinance establishes relocation assistance payments equal to three months’ rent or $5,000, whichever is greater, for a no-fault eviction.

The ordinance establishes a tenant’s right to return to a dwelling if the landlord chooses to rent the residence within 12 months of eviction. It also has protections for those who are elderly, disabled or terminally ill.

California’s Costa-Hawkins Rental Housing Act prohibits local rent control regulations on properties constructed after 1995. Detached homes and condominiums are also exempt from rent control under the law.