COUNCILMEMBER DONNA FRYE
CITY OF SAN DIEGO
SIXTH DISTRICT

Memorandum

As we all know, San Diego is in the midst of a housing crisis and renters are some of the hardest hit. Faced with rising rents, vacancy rates near zero, and sporadic evictions for arbitrary reasons, San Diego renters are left with few housing options.

Community service organizations across the city have noted increasing tension in tenant-landlord relationships. While most landlords are honest and law abiding, some are taking advantage of the housing market and evicting at will. Responsiveness to repairs is down, deposit abuse seems rampant, and very few tenants know their rights, which leaves them to search for a new home in an impacted housing market. San Diego has done little to protect the renter population.

San Diego Municipal Code Section 31.0305 provides for a rental unit tax assessed on all residential rental properties. In 2002, this tax brought in $4,899,323 to the San Diego General Fund, where it was used for a variety of public services. I propose that we redirect this revenue stream toward the source in order to create a meaningful program that will educate and protect landlords and tenants.

I believe one solution to this crisis is to create a dispute mediation and resolution (DMR) program as an alternative to the court system. Run by either the City or an independent agency, the DMR program will provide tenants and owners with a forum in which to reconcile their differences in order to find a favorable outcome for all parties. A DMR program can be used to inform both tenants and owners as to their rights and obligations, as well as help in enforcing landlord-tenant law. The DMR program will demonstrate the value the City places on the approximately 50% of our San Diego population who are presently tenants and hopefully avert possible legal battles.

I realize that the current budget constraints will not allow us to move on this project immediately, but I hope that we can initiate discussions now in order to facilitate this plan when the budget allows. Notably, the Apartment Association has expressed interest in providing funding for such a program. I respectfully request that you docket the proposal for consideration by the Land Use and Housing Committee as soon as possible. Thank you for your time and commitment to this issue.