City Removes Controversial Occupant Protections After Legal Concerns
Santa Monica officials have revised a proposed rent-control ballot measure after city attorneys warned that some of the most expansive tenant protections could face significant legal challenges.
The City Council and Rent Control Board voted during a joint special meeting to remove provisions that would have allowed additional household members to remain in rental units after the original tenant moved out, regardless of the reason for the vacancy.
Instead, the revised proposal will focus on two narrower changes: extending just-cause eviction protections to single-family homes and condominiums and aligning owner move-in requirements for those properties with existing rent-control rules.
For multifamily property owners and investors, the change represents a reduction in the scope of potential restrictions originally proposed for the November election.
Original Proposal Raised Concerns Over Long-Term Control of Rental Units
The initial ballot measure approved by the City Council in July included several rent-control charter amendments, including expanded protections for occupants who remained in a unit after the original tenant left.
The proposal was designed in part to address situations where family members or other household occupants could be displaced after a primary tenant was no longer able to remain in the property, including cases involving federal immigration enforcement.
However, the language went beyond existing tenant protections by removing the traditional requirement that a tenant’s death or incapacity trigger succession rights.
Under the proposed rules, protections could have applied whenever a tenant vacated a unit for any reason. The measure also expanded eligibility beyond spouses and children to include a broader group of lawfully residing occupants.
City Attorney Warned of Potential “Perpetual Tenancy” Issues
During the joint meeting, city officials raised concerns that the measure could create unintended consequences for rental housing providers.
City Attorney Heidi von Tongeln told officials that the proposal appeared to be unprecedented and had not been tested in court. She noted that staff could not identify another jurisdiction that had removed the death-or-incapacity requirement while also expanding protections to such a broad group of occupants.
One concern discussed was the possibility of creating a cycle where a departing tenant could effectively transfer long-term occupancy rights to another resident, who could then establish similar rights for future occupants.
Critics argued that the language could limit a property owner’s ability to regain possession of a unit and potentially conflict with the state’s Costa-Hawkins Rental Housing Act.
Because the changes would have been adopted through a voter-approved charter amendment, officials also noted that any future legal correction could require another ballot measure rather than a simple legislative adjustment.
Council Chooses Narrower Approach Before Ballot Deadline
Santa Monica faced a tight timeline to finalize ballot language, with Los Angeles County’s deadline approaching in early August.
Some officials initially supported modifying the measure rather than removing the occupant protections entirely, including restoring the requirement that succession rights apply only after a tenant’s death or incapacity.
Others argued that moving forward with the broader language could expose the city to costly litigation and create uncertainty for both tenants and housing providers.
Council members ultimately directed staff to return with a revised measure focused only on:
- Expanding just-cause eviction protections to single-family homes and condominiums
- Updating owner move-in provisions for those properties
The broader occupant protection provisions will receive additional review before potentially returning in a future election cycle.
Implications for Multifamily Owners and Investors
The revision reduces the immediate regulatory risk for multifamily owners who were concerned about expanded succession rights and potential limitations on future unit recovery.
While Santa Monica continues to evaluate additional tenant protection policies, the decision reflects the city’s willingness to reconsider proposals that may create legal uncertainty or unintended impacts on rental housing operations.
For investors, the outcome highlights the importance of closely monitoring local ballot measures and regulatory changes, particularly in markets with active rent-control discussions.
Questions? Contact the TIG Team!
Click on a contact card below to email one of our team members directly.
