Mountain View committee reviews draft budgets for rent‑stabilization programs

On April 24, 2025, the City of Mountain View Rental Housing Committee reviewed staff-recommended budgets for two rent‑stabilization programs: the Community Stabilization and Fair Rent Act (CSFRA) and the Mobile Home Rent Stabilization Ordinance (MHRSO). The committee did not vote on the budgets; staff will bring them back for adoption at the committee—s May 22 meeting.

The staff presentation said the recommended FY 2025–26 CSFRA budget anticipates roughly $1,870,000 in revenues and about $2,580,000 in expenditures, producing a recommended fee of $130 per covered unit per year (about $10.83 per unit per month) when the budget is calculated against 14,440 covered units. Staff said the recommended budget includes the same staffing level as the current year: seven full‑time equivalent positions with a personnel line budgeted at $1,600,000. The recommended CSFRA reserves are set at 20% of operating expenditures (about $517,000).

Staff highlighted rising third‑party professional service costs, including expanded outside legal counsel budgeted at $509,000 for the CSFRA, driven by increased petition volume and complexity. Project Sentinel will continue to provide settlement and hearing officer services at the same level as this year. The recommended budget adds $32,000 for Community Legal Services of East Palo Alto to provide legal assistance to low‑income tenants and $35,000 for community services coordination (case management) to support on‑site assistance at the Housing Help Center; staff said roughly half of the tenant legal services funding will come from federal CDBG funds and the rest from the CSFRA budget. Staff also noted continued investment in an online petition portal, with remaining capital outlay allocated to portal development.

For the MHRSO, staff proposed revenues of about $223,000 and recommended expenditures of about $299,000 for FY 2025–26. The MHRSO staffing line reflects one dedicated analyst at about $199,000. Staff said the city council previously approved a $50,000 city general fund supplement to reduce the MHRSO annual space fee by 50 percent; staff recommended an annual fee of $142 per space ($11.83 per space per month) for the coming year.

Committee members raised questions about structural pressures on the CSFRA fee. Member Balch asked whether anticipated legal and staffing trends make a material fee increase likely in future years; staff acknowledged an upward trend in costs and said actual year‑end expenditures have historically come in under budget, but could not rule out a future increase. Member Hyslop asked for clarification that a 15% indirect city cost allocation is included to cover HR, finance and IT services; staff confirmed the indirect allocation is part of the budget. Hyslop also asked how the community services coordination differs from county homelessness prevention services; staff said the city—s contractor provides on‑site intake, assessment and direct contact with landlords and does not itself provide emergency rental assistance — the $35,000 is for case management, not direct rental payouts.

Members expressed support for maintaining translation and interpretation services for community events and hearings. Several members urged staff to continue monitoring technology options but cautioned against relying on real‑time AI translation without human review.

Staff said the draft budgets are intended to be full cost recovery for each program, subject to committee direction on reserve levels and use of other funding sources. No formal action was taken on the budgets at the April 24 meeting. Staff will return with final budgets and fee adoption on May 22.

Ending details: staff noted the CSFRA fee calculation uses the approved budget less prior year ending balances and limited‑period funding divided by covered units; the MHRSO AGA and fee calculation reflect a council amendment that set the MHRSO AGA at 60% of the CPI‑U with a 3% ceiling and a 50% lower fee level subsidized by the city.