City of Salinas Just Cause Rent Stabilization Ordinance (Ordinance No. 2681)
By Peter D. Brazil, Partner, Business, Real Estate, Landlord Tenant Law
On September 24, 2024, the Salinas City Council adopted comprehensive tenant protection ordinances consisting of the following four (4) ordinances, which became operative on January 1, 2025:
- The Rent Stabilization Ordinance, which limits annual rent increases;
- The Just Cause Eviction and Tenant Protection Ordinance (Ordinance No. 2682), which restricts evictions to specified at-fault and no-fault grounds and requires relocation assistance for no-fault evictions;
- The Tenant Anti-Harassment Ordinance, which prohibits landlords from using coercive or retaliatory tactics to force tenants to vacate; and
- The Rental Registry and Program Administration Ordinance, which establishes the administrative framework and oversight necessary to implement and enforce the tenant protection program.
The City developed these ordinances as an integrated package, purportedly to address rising housing costs, displacement, and housing instability. Together, they are designed to work in tandem to regulating rent increases, limiting unjust evictions, preventing tenant harassment, and providing enforcement and administrative mechanisms to ensure compliance and protect housing stability for Salinas renters.
In this article, we will review the Rent Stabilization Ordinance (“Ordinance 2681”) and look at the key differences between it and the statewide Tenant Protection Act of 2019.
Summary of City of Salinas Rent Stabilization Ordinance
Ordinance 2681, establishes local rent control protections and applies to most rental units in the City of Salinas (the “City”), subject to exemptions required by the Costa-Hawkins Rental Housing Act and certain categories such as affordable housing, hotels, dormitories, institutional housing, and some historic properties.
Ordinance 2681 limits rent increases for covered units to the lesser of 2.75% or 75% of the annual Consumer Price Index (CPI) and allows only one (1) rent increase every twelve (12) months. It also treats reductions in housing services as rent increases. Landlords who believe the cap prevents a fair return may petition the City for approval of a larger increase.
Tenants may petition for rent reductions when landlords charge unlawful rent, reduce housing services, or fail to maintain habitable conditions. Landlords may seek fair-return adjustments or pass through certain capital improvement costs, while tenants may request hardship relief from those pass-through charges.
Ordinance 2681 also includes strong enforcement provisions, including invalidation of rent increases if landlords fail to comply with registration, notice, fee, or habitability requirements. Violations may result in damages, attorney’s fees, statutory penalties, and other remedies. The City also administers a rental registration and fee program to support enforcement.
Comparison With California’s Tenant Protection Act (AB 1482)
The primary difference between the Ordinance 2681 and the California Tenant Protection Act of 2019 (AB 1482) is the rent cap. AB 1482 permits annual rent increases of up to 5% plus CPI, capped at 10% annually, while Ordinance 2681 limits increases to the lesser of 2.75% or 75% of CPI, creating substantially greater restrictions on rent increases.
Ordinance 2681 also establishes local administrative procedures that do not exist under AB 1482. Tenants can petition for rent reductions, and landlords can seek fair-return increases through a hearing process with appeal rights to the City Council. Additionally, the Ordinance 2681provides stronger local enforcement tools, as compared to AB 1482, including statutory damages, attorney’s fees, affirmative defenses, and municipal oversight.