Berkeley council approves first reading of demolition, dwelling-unit control amendments after heated hearing

Berkeley — The City Council on June 25 approved first reading of zoning ordinance amendments to Berkeley Municipal Code section 23.326 to implement demolition and dwelling-unit controls and to conform local rules to SB 330, the state Housing Crisis Act of 2019. The vote follows a staff presentation, a supplemental proposal from Councilmember Kesarwani, public testimony and extended council debate.

Jordan Klein, the city’s director of planning and development, turned the presentation over to Justin Horner of the planning department, who told council that "SB 330 requires all demolished units to be replaced." Horner summarized changes staff recommended, including removing the ordinance’s mitigation fee option, clarifying which units are protected, expanding the prohibition on demolitions tied to recent no-fault evictions, shifting certain harassment/illegal-eviction fact-finding to the Rent Stabilization Board, and providing explicit relocation benefits and rights of first refusal for sitting tenants.

The proposed code defines three categories of protected units consistent with SB 330: deed-restricted below-market-rate (BMR) units, rent-controlled units, and units occupied by households at 80% of area median income (AMI) or below. For deed-restricted and rent-controlled units, replacement affordability would follow the city’s inclusionary rules (at least half of replacement units affordable at 50% AMI and the remainder at 80% AMI). Horner also described a set-aside for very-low-income households (replacement at 30% AMI where the displaced household qualifies) and examples showing how replacements would be allocated in small and large projects.

Councilmember Kesarwani presented a supplemental packet that proposed several clarifying edits and an alternative approach in cases where household income data are missing: use the HUD CHAS renter-share for Berkeley (61% low- or lower-income renters) to proportion replacement units — "61% of them will be replaced with affordable units," she said — as a compromise intended to balance tenant protections with project feasibility in areas like the Southside.

Lisa M. Weisberg, chair of the Berkeley Rent Stabilization Board, urged council to keep the ordinance "tenant-centered," warned against amendments she said would weaken protections, and emphasized that the Rent Board has adopted policies and a process to appeal projects that do not replace units as required by state law.

Public commenters were sharply divided. Developers, consultants and some homeowners said the supplemental language would reduce undue burdens on small owners and help preserve feasibility for missing-middle projects and owner-occupied replacements. Tenant advocates, the Rent Board and several residents argued the ordinance must preserve strong 1-for-1 replacement rules and warned that weakening requirements would accelerate loss of naturally occurring affordable housing.

Council members debated tradeoffs between preserving existing rent-controlled housing and enabling new housing production. Staff and Rent Board attorneys clarified legal points: the CHAS data referenced by staff use renter-only statistics for the presumption when occupancy data are unknown; the city’s rent-stabilization ordinance treats units that are rented or available for rent as subject to rent control; and state preemption (Costa-Hawkins) limits voluntary local rent-control schemes.

After discussion the mayor moved to approve first reading with two amendments (a revised definition of "comparable unit" to default to the state-equivalent-size standard and a staff clarification that the presumption for unknown-occupancy units uses renter-only CHAS proportions). A substitute motion to approve the planning staff version as presented failed. The main motion passed on roll call with six yes votes and three no votes.

Vote on main motion (first reading): Yes — Taplin; Bartlett; Trego; Hahn; Munapara; Mayor Arreguin. No — Kesarwani; Weingraff; Humbert. The ordinance number was not specified at first reading.

The council recorded that certain exceptions remain in the draft ordinance: accessory dwelling units (ADUs), junior ADUs and "golden duplexes" have tailored treatment in some sections (including a one-time relocation payout for owners of small owner-occupied accessory units), and an exception allows a demolished illegal unit to be exempted from replacement only if a city official (zoning officer, building official or fire chief) finds a code-compliant replacement is infeasible. Staff said the item will return for second reading to incorporate additional technical edits.

What’s next: The ordinance passed first reading; per council action, staff will revise the proposed text to reflect the amendments and bring the ordinance back for a second reading. Several council members signaled interest in revisiting aspects of replacement options after possible future changes to the rent-stabilization framework.

Sources: City staff presentation and city council public hearing transcript, June 25, 2024. Quotes and attributions are drawn from the hearing record.