Oakland City Council Meeting

Rental Owners Needed to Attend Oakland City Council Meeting

Speak Out For An Allowable Increase in Garbage Fee Pass Through to Renters

Tuesday, July 1st @ 3:30pm

Item #7

Subject: Rent Adjustment Ordinance Amendment

From: Housing And Community Development Department

Recommendation: Adopt An Ordinance Amending The Rent Adjustment Ordinance To Allow Owners To Petition For Rent Increases Based On Increased Costs Of Waste

Service Rates.

Under current law, owners may not directly pass on the expense of Waste Services to renters, unless the rental unit has its own meter.

In the upcoming Oakland City Council Meeting, council members will be voting on a legal settlement requirement that Oakland consider allowing Housing Providers to pass through garbage rate increases over the CPI.

Over the last 6 years, rates have increased 48%, but RAP has only allowed a 13% increase during this time. The City Council must consider allowing housing providers to pass through the actual amount based on the City's agreement to a lawsuit that was recently settled.

Talking Points for Public Comment

1. Rent Increases Are Capped—But Operating Costs Are Not

• Oakland's RAP caps annual rent increases based on CPI, typically around 2–3% per year and as low as .8% in 2025..

• Meanwhile, garbage rates have risen 25% more over the past 6 years, an average of 4.2%.

• Waste rates have increased a full 12.2% more than permitted by RAP CPI. Housing providers cannot pass through these significantly rising costs.

2. Inability to continue to provide housing

• Rising garbage rates, along with other uncontrollable expenses (insurance, taxes, maintenance), leave nothing left to provide housing.

• This creates unsustainable financial pressure on small housing providers who often rely on these properties for retirement or supplemental income.

3. Disincentive to Maintain or Improve Properties

• When operating costs rise faster than allowed rent increases, landlords are less able to afford repairs, upgrades, or property improvements, degrading housing quality over time.

4. Accelerated Disinvestment and Loss of Housing Supply

• Over time, persistent financial strain drives small landlords to sell, exit the market, or convert units to non-rent-controlled use (e.g., owner occupancy or short-term rental).

• This reduces the supply of affordable rental housing—ironically worsening the housing crisis RAP aims to address.