Housing commission backs 3 months relocation pay for no-fault evictions, adds small-owner carve-out

Sunnyvale’s Housing Commission voted to recommend the City Council amend Sunnyvale Municipal Code chapter 19.71 to require three months’ relocation assistance for no-fault just-cause tenant displacement, with a carve‑out exempting sole‑proprietor owners of seven or fewer rental units.

Affordable housing manager Ernie DiFrenci told the commission the city’s ordinance, adopted in 2023, mirrors California’s AB 1482 with two differences: Sunnyvale’s code covers all rental units regardless of construction date, and it requires two months’ relocation assistance where state law requires one. DiFrenci summarized outreach and legal context, saying “as of April 1, 2024, Senate Bill 567 took effect, which already provided additional enhanced tenant protections.”

DiFrenci told commissioners the city posted a two‑week survey and emailed more than 650 landlords and property managers. “Fourteen respondents identified as landlords or property managers and did not support any increase to relocation,” he said, while “24 respondents identified as not being landlords or property managers and were in favor of increased relocation benefits.” He added that two city outreach meetings drew no attendees and that staff has taken roughly 20 tenant calls about displacement since the ordinance took effect.

The commission split during debate. Commissioner Patricia Stewart argued for raising the benefit, saying tenants facing a no‑fault displacement “have to come up with first rent, last rent, and deposit before they have moved out of the unit that they are occupying, and this is a considerable burden.” Commissioner Stewart moved to recommend the increase to three months. Vice Chair Weiss seconded after withdrawing an initial amendment seeking exemptions for below‑market landlords.

Several commissioners warned of possible side effects. Commissioner Friedlander said the city already provides more than state law and expressed concern that higher relocation costs could be passed into rents. Other commissioners told staff they had heard few documented no‑fault displacement cases and questioned whether a change was needed now.

After discussion the commission approved the motion to direct staff to return to council with an ordinance increasing relocation assistance to three months for no‑fault just‑cause evictions, and to draft a carve‑out for sole proprietors owning seven or fewer units. Chair Duncan called for a roll call; the clerk recorded the motion as passing (three votes in favor, two opposed, two commissioners absent). DiFrenci said the ordinance and its implementing language will proceed to the Planning Commission and then City Council; the item is scheduled for council consideration on Feb. 25, 2025.

Why it matters: the question balances tenant protection against potential costs to small landlords and the local rental market. Staff cited limited public response to outreach but also noted recent state law changes (SB 567) that added tenant protections after the city adopted its ordinance.

What happens next: staff will draft ordinance language implementing the commission’s recommendation — including the sole‑proprietor carve‑out — and return the draft to the Planning Commission and City Council for their review and final action.