PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 03/30/2026
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION AUTHORIZING AND APPROVING AMENDMENT #2 TO THE FY 2025-27 CITY COUNCIL PRIORITY WORKPLAN UNDER MAJOR POLICY AREA: EXPAND HOUSING OPTIONS, TO ADD POLICY #310 RENTAL PROTECTIONS: EXPLORE POLICY FEASIBILITY TO ENHANCE TENANT PROTECTIONS PROVIDED BY THE CITY TO INCLUDE: C. PROCEED WITH DEVELOPMENT OF A NEW RENT REVIEW PROGRAM FOR TENANTS AND HOUSING PROVIDERS WITH STAKEHOLDER INPUT VIA NEW ORDIANCE FOR PROGRAM IMPLEMENTATION BY JANUARY 1, 2027
CEQA: This is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2023-2025 Council Priority Workplan Compliance Statements:
Under Major Policy Goal: Expand Housing Option, the City Council would consider adding Amendment #2, under adopted Policy #310: Rental Protections: Explore policy feasibility to enhance Tenant Protections provided by the City to include: c). Explore viability of a City provided Rent Review Policy & Program for implementation by January 1, 2027 to the FY 2025-27 City Council Priority Workplan, effective April 7, 2025.
CEQA Compliance Statement
This proposed action is not a project as defined by CEQA; although, particular projects in the Workplan may be subject to CEQA and require additional review.
BACKGROUND
On April 7, 2025, the City Council adopted the FY 2025-27 Council Priority Workplan (Workplan) via Resolution 2025-044. Since this adoption, the City Council may review it’s Workplan to add additional policy items by majority vote via adopted Resolution.
Workplan Amendment #1
On January 26, 2026 the City Council amended the Workplan, under Major Policy Goal: Focus on Economic Development and Fiscal Diversification, to include the following new policy, as follows:
Policy No. #417: Explore feasibility and implementation of an Enhanced Infrastructure Financing District (EIFD) as an economic development tool to capture value from potential new development across the City to fund critical infrastructure and community investment priorities.
This Workplan amendment #1 was subsequently adopted by the City Council via Resolution 2026-009.
Expand Tenant Protections to Community
On February 19, 2026 City Staff present a new tenant protection program to the Economic Development, Housing and Project Management (EDHPM) Standing Committee, consisting of Councilmembers Cruz and Ponce, consistent with previous City Council majority vote direction received on July 1, 2025, to enhance community education and tenant protection programs to the San Pablo community.
Proposed City Rent Review Program (Policy Amendment #2)
A proposed City Rent Review Program will be considered as Policy Amendment #2 to the Workplan for City Council formal consideration and approve. If adopted, City Manager/staff will assess its feasibility with stakeholder input included before implementing the program by January 1, 2027, via ne adopted Ordinance.
Instead of a new City-wide rent control program with market rent caps, a proposed Rent Review program would offer an alternative, less costly, less administratively intense program for local San Pablo residents designed to generally benefit both tenants and property owners, as follows:
• Provides tenants with an opportunity to seek review of significant rent hikes;
• Provides housing providers with transparent guidelines and fair impartial process;
• Promotes housing stability and reduces displacement risk within the City; and
• Supports housing investments to existing and new housing stock for the community.
City staff will assess the feasibility of the Rent Review Program, determine suitable administrative responsibilities, seek input from community stakeholders, and establish new policies and guidelines for effective program implementation, using successful programs implemented in the cities of Fremont and San Leandro, CA. Overall, the purpose of the Rent Review Program would be to provide a transparent public process for reviewing significant rent increases, safeguard tenants from excessive rent burdens, and promote housing stability in the City.
Budget Impacts/Trade-Offs
The City has major operational budget challenges in starting a new, City-wide rent control program, which would require establishing a new Housing Division/Department, consisting of five (5) new, full-time (FTE) equivalent staff, with an annual budget of $1.2M annually to administer and enforce such a program, according to a 2024 independent, third party assessment report conducted by RSG for the City as presented to the City Council on July 1, 2025.
With no new revenue source for a City-wide rent control program, the City may need to shift current FTE staffing or cut existing programs in other City Departments, since declining Casino revenues-funding nearly 60% of the City’s General Find Operating Budget-have declined annually since FY 2022-23.
Alternatively, a proposed City Rent Review Program offers a less costly, less intensive program with lower annual operating costs and funding requirements. Initially, the City Manager/staff believes the program could fit within current operational parameters and staffing. However, a portion of its annual program costs may be offset with a new revenue source identified, including consideration of a new half-cent tax measure to be considered by the City Council for the November 2026 ballot in July 2026.
However, these fiscal impact and program details would require additional analysis and would be shared with the City Council prior to any future Ordinance adoption process during FY 2025-27.
EDHPM Standing Committee Recommendation - Policy Amendment #2
Following its review, the EDHPM Standing Committee authorized the City Manager/staff to draft a policy amendment #2 to the FY 2025-27 City Council Priority Workplan for formal consideration and approval by the City Council to read:
UNDER MAJOR POLICY AREA: EXPAND HOUSING OPTIONS
Under Policy #310:
RENTAL PROTECTIONS: EXPLORE POLICY FEASIBILITY TO ENHANCE TENANT PROTECTIONS PROVIDED BY THE CITY TO INCLUDE:
Add Policy (c.) Proceed with development of a new Rent Review Program for tenants and housing providers with stakeholder input via new Ordinance for program implementation by January 1, 2027.
Following City Council formal approval this evening, the City Manager will amend the Workplan and post the updated document on the City’s website at the following link:
<https://www.sanpabloca.gov/1362/City-Council-Adopted-Priority-Workplan>
FISCAL IMPACT
There are no budgeted funds associated with this expense.
ATTACHMENTS:
Att A - Resolution
Att B - FY 2025-27 Council Priority Workplan - Includes Proposed Amendment #2