Pasadena Rental Board Weighs Security Deposit Regulations, Reviews Registry Fees Collected

The Pasadena Rental Housing Board meets Thursday evening at City Hall to consider aligning its security-deposit regulations with language approved by voters last year and to set the annual interest rate landlords must pay on tenant deposits for 2026. A closed session focused on ongoing litigation precedes the public meeting.

The board’s public session is scheduled for 6:30 p.m. in the Council Chamber (Room S249), following a 6 p.m. closed session on California Apartment Association et al. v. City of Pasadena, a case challenging portions of Pasadena’s rent law now on appeal.

During the open session, public comment will be accepted in person and via videoconference. Spanish interpretation will be provided.

Under “New Business,” directors will consider amendments to Chapter 10 (Security Deposits) of the board’s regulations. The changes would codify Measure PR’s requirement that the board set the security-deposit interest rate each October based on the average savings-account rates at five FDIC-insured banks with Pasadena branches, with the adopted rate taking effect the following Jan. 1. Staff recommends adopting the amended text and—separately—setting the 2026 deposit interest rate at 0.12%, based on an Oct. 1 bank survey. Staff has found the actions exempt from CEQA under the “common sense” exemption.

Two information items are also on the agenda:

• Director’s Monthly Report and draft Annual Report. September saw 338 inquiries to housing counselors, and 59 eviction notices were filed in the city’s portal. As of Oct. 13, the second-year rental registry showed 3,396 properties registered (47%), with total “substantial compliance” at 55% and cumulative $2.60 million in fees received for the current cycle, according to staff charts in the report.
• Department Operating Budget — Quarterly Update. For fiscal 2025, the Rent Stabilization Department reports spending about $3.79 million of a $4.76 million budget, driven by staggered hiring and selective contracting; in the first quarter of fiscal 2026, actuals totaled roughly $883,000 against a revised $5.14 million plan. Staff requests no action beyond receiving the update and potential board direction.

Directors are also slated to approve minutes from Sept. 4. Chair Allison Henry will preside. Meeting materials and supporting documents are posted on the city’s website here; items may be taken out of order.