Council Takes Up Rent Stabilization and Rental Registry
The ordinance passed its first reading 4-3 on Sept. 22, with $500,000 in startup funding approved from the Measure I housing fund.
City staff on Sept. 22 introduced two new chapters of the Santa Barbara Municipal Code that would create a citywide rental registry and a rent stabilization program, and asked the council for $500,000 in startup funding.
The draft ordinance would add Chapter 26.90, covering rent stabilization, and Chapter 26.100, covering the residential rental registry. Staff asked for $500,000 from the Measure I Flexible Housing and Homelessness Fund to cover startup costs including software, consultant extensions and initial staffing.
Under the proposal, the annual rent adjustment would be set at the lesser of 60 percent of the change in the Consumer Price Index or 3 percent. Registration would be phased: covered rent-stabilized units would register by April 1, 2027, other rental units by Oct. 1, 2027, with enforcement beginning Jan. 1, 2028.
Staff estimated a long-term operating budget of $2 million to $2.4 million with seven to nine full-time positions at steady state. Two policy choices remain open: whether to exempt deed-restricted affordable housing, and whether the rent stabilization board should have five or seven members. Staff recommended seven.
The presentation also outlined a capital improvement pre-approval process for landlords seeking to pass renovation costs through to tenants, and fair-return petition procedures for landlords seeking relief above the annual cap. Staff said fair-return petitions average roughly 120 days and about $27,000 in staff, hearing officer and legal support per petition.
Council members pressed staff on petition timelines and costs, how registry fees would be calculated, and how the city would handle privacy and enforcement. The council is proceeding with a cost-of-service fee study with results targeted for Dec. 15, alongside public outreach and implementation materials.
The ordinance passed its first reading on Sept. 22 in a 4-3 vote, and the council approved the $500,000 startup appropriation from the Measure I-supported housing and homelessness fund, according to The Cooldown, citing the Santa Barbara Independent. In a separate 4-3 vote, the council approved Housing Authority-backed exemptions for some deed-restricted affordable housing. A final adoption vote is still ahead, with the city targeting a Jan. 1, 2027 launch.
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