City Could Penalize Registration Delinquent Landlords With Late Fees

On Thursday, the Pasadena Rental Housing Board will consider amending Chapter 9 of its regulations to impose tiered late fees on landlords whose rental registrations are not in substantial compliance and which are delinquent. The proposal stems from low compliance rates, and aims to improve data accuracy and ensure funding for the Rent Stabilization Department’s (RSD) operations.

The proposed late fee structure, modeled after a system used in Richmond, Calif., would charge:

• 10 percent ($23.80) for registrations 1–30 days late,
• 25–30 percent ($59.50–$71.40) for 31–60 days late, and
• 50 percent ($119.00) for registrations more than 60 days overdue.

Late fees would become part of the Rental Housing Fee and considered a debt to the City of Pasadena, if this plan is authorized.

RSD launched its first registration cycle on Sept. 23, 2024, with a Dec. 22 deadline. As of seven months later, only 48 percent met the original deadline; the overall compliance rate today stands at 88 percent.

Landlords were originally required to register rental units they own within 90 days after the Rental Registry’s launch and annually by Oct. 31. Fewer than half complied initially.

Registration includes property details, ownership structure, rent history, and amenities. “Substantial compliance” is defined by timely corrections, full payment of fees, and an effort to meet regulatory requirements. Registrations that have been received by the RSD and are under staff review are also considered compliant.

The Board previously adopted Resolution No. RHB-2024-11 to establish registration procedures, but didn’t set late fees.

In addition to late fees, the department charges penalties for non-compliance include rent increase restrictions and tenant petitions for rent withholding.

Tenants may petition to withhold rent when landlords knowingly fail to register. If non-compliance persists beyond 60 days, tenants may retain up to 100 percent of withheld rent, which is held in escrow by the Board.

Other California jurisdictions such as Berkeley, Culver City, and Los Angeles County apply similar late fees. Unlike Richmond, some allow fee pass-throughs to tenants.