(a)
Applicability of Section. This Section shall apply to every rental housing unit in the City that is a controlled rental unit pursuant to City Charter Section
1800 et seq. (including a room in a single-family home, hotel or motel, rooming house or apartment, single-family home, mobile home or mobile home space, trailer or trailer space), and to every rental housing unit in the City that is a non-rent-controlled rental unit pursuant to City Charter Section
2300 et seq.
(b)
Disclosure Prior to Buyout Offers. Prior to making
a buyout offer, the landlord shall provide each tenant in that rental
unit a written disclosure, on a form developed and authorized by the
Rent Board for controlled rental units and by the Housing Office for
non-rent-controlled rental units, that shall include the following:
(1)
A statement that the tenant has a right not to enter into a
buyout agreement;
(2)
A statement that the tenant may choose to consult with an attorney
before entering into a buyout agreement;
(3)
A statement that the tenant may rescind the buyout agreement
for up to thirty days after it is fully executed;
(4)
A statement that the tenant may visit the Rent Board for rent
controlled rental units for information about other buyout agreements
in the tenant's neighborhood and other relevant information;
(5)
Any other information required by the Rent Board for rent controlled
rental units or the Housing Office for non-rent-controlled rental
units consistent with the purposes and provisions of this Section;
(6)
A space for each tenant to sign and write the date the landlord
provided the tenant with the disclosure;
(7)
A statement that offering payments to a tenant to vacate within six months after the tenant has notified the landlord in writing that the tenant does not wish to enter into a buyout agreement or buyout negotiations may constitute bad faith harassment of the tenant under Section
4.56.020(f) of this Code;
(8)
A statement that the tenant is entitled to at least the minimum
buyout amount and how much the minimum buyout amount is.
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The landlord shall retain a copy of each signed disclosure form
for five years, along with a record of the date the landlord provided
the disclosure to each tenant.
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(c)
Requirements for Buyout Agreements. Every buyout
agreement shall:
(1)
Be in Writing. The landlord shall give each tenant
a copy of the buyout agreement at the time the tenant executes it.
(2)
Include the following statements in bold letters in at least
fourteen-point type in close proximity to the space reserved for the
signature of the tenant(s):
(A)
"You may cancel this agreement in writing at any time before
the thirtieth day after all parties have signed this agreement."
(B)
"You have a right not to enter into a buyout agreement."
(C)
"You may choose to consult with an attorney or the Rent Control
Board for rent controlled units before signing this agreement. The
Rent Control Board may have information about other buyout agreements
in your neighborhood."
(3)
Be for at least the minimum buyout amount.
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A buyout agreement that does not satisfy all the requirements
of this subsection shall not be effective and may be rescinded by
the tenant at any time.
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(d)
Rescission of Buyout Agreements. A tenant shall
have the right to rescind a buyout agreement for up to thirty days
after its execution by all parties. In order to rescind a buyout agreement,
the tenant must hand-deliver, email, or place in the U.S. mail a statement
to the landlord indicating that the tenant has rescinded the buyout
agreement.
(e)
Filing of Buyout Agreements. The landlord shall file a copy of the buyout agreement no sooner than the thirty-first day after the buyout agreement is executed by all parties, and no later than sixty days after the agreement is executed by all parties. Buyout agreements for rent controlled units shall be filed with the Rent Control Board unless the Board opts not to adopt regulations implementing this Section, in which case buyout agreements shall be filed with the City Clerk. Buyout agreements for non-rent-controlled units shall be filed with the City Clerk. This filing requirement does not apply to buyout agreements rescinded under subsection
(d). Failure to comply with the requirement of this subsection may be asserted as an affirmative defense in an action brought by the landlord to recover possession of the unit.
(Added by Ord. No. 2478CCS, § 4, adopted 1/13/15; amended
by Ord. No. 2776CCS, 2/13/24)