Santa Barbara council directs staff to return with tightened tenant-protection amendments after large public turnout

Santa Barbara —n(2025-03-11) —nAt a packed March 11 hearing, the Santa Barbara City Council directed staff to return with ordinance language tightening the city's just-cause tenant-protection rules to close a loophole used by some landlords to "renovict" tenants and then re‑rent units at much higher rates.

What the council asked for: Councilmembers requested staff draft and return with amendments that (1) require independent verification that a "substantial remodel" truly requires a tenant to vacate, (2) cap the rent charged to a tenant exercising the right of first refusal upon return to the unit (the draft language discussed would limit the rent to the pre-eviction rate plus CPI plus 5%, capped at 10%), and (3) create a one-year cooling-off period preventing a new owner from evicting tenants for demolition or substantial remodel within 12 months of purchase.

Why it matters: Dozens of tenants, teachers, nurses and community groups told council the existing ordinance did not stop out-of-town investors and LLCs from buying rental properties, evicting long-term tenants under the substantial-remodel exception and then charging much higher rents. Speakers said the practice forces workers, families and service employees out of the city.

What staff said: City staff identified procedural questions for council to answer if it wished to direct a draft ordinance: whether staff should incorporate clarifying edits suggested by Legal Aid of Santa Barbara; what additional data or analysis staff should prepare; whether to hold focused outreach with stakeholders; and whether the draft ordinance should go to the ordinance committee or return directly to council. City Attorney staff said the proposed changes do not appear unconstitutional but recommended clear drafting. Staff also clarified that single-family homes remain exempt under state law (Costa-Hawkins) unless owned by a corporate entity, consistent with the city's existing code.

Public comment and backing: More than forty people addressed the council in favor of closing the loophole, including the League of Women Voters and local legal-aid representatives. Speakers described families receiving 60-day no-fault notices linked to property sales and urged immediate action to prevent displacement. Several speakers cited comparable protections adopted in neighboring jurisdictions.

Council action and timing: Council Member Santa Maria moved to direct staff to return with ordinance language incorporating councilmembers' requested changes and any clarifying edits from Legal Aid; Councilmember Harmon seconded. Council also directed staff to use the city's existing task-force reports and prior community input rather than launch a new, lengthy outreach process. Staff said they would return with a proposed ordinance on April 8 for first reading and further council consideration.

Clarifications and scope: Staff confirmed the proposals would apply to qualifying tenants under the city's just-cause code; the city's existing list of exempt properties would remain in place. City attorneys said an administrative appeal process for rare, demonstrable cases where an owner claims a remodel is essential could be added, and the council asked staff to evaluate an appropriate, streamlined appeals or arbitration path.

Next steps: Staff will prepare the ordinance draft and incorporate the limited clarifying edits requested by Legal Aid of Santa Barbara; the ordinance will return to council for consideration and potential introduction on April 8. Council members said they wanted the item brought back directly to the full council rather than routed again through the ordinance committee.