City Council to Weigh $2.8 Million Budget for Rent Stabilization Department

The City Council will vote Monday on whether to adopt a $2.8 million operating budget for the new Rent Stabilization Department.

If passed, the Rent Stabilization Dept. would have the authorization to hire 12 full-time staff people.

Last month, the Council unanimously passed an ordinance establishing the Rent Stabilization Department. The City Council ordinance will be reviewed after two years to assess its effectiveness and make necessary adjustments.

“The Rent Stabilization Department (RSD) was created in December 2023 to support the Pasadena Rental Housing Board (PRHB) duties to regulate rent increases on certain rental properties in the city, provide eviction protections, and carry out the other duties set forth in the Pasadena Fair & Equitable Housing Charter Amendment (Charter Amendment) approved by Pasadena votes in November 2022,” according to a City staff report.

The proposed budget covers the remainder of this fiscal year.

There are no final, official projections of how much it will increase during the next budget process.

A new Rental Housing Fee will be collected from 31,316 rental units in Pasadena to fund the budget.

The approved Rental Housing Fee revenue would be used to repay the $500,000 advance from the City’s General Fund which the Board has been using to fund its start-up expenses.

As of December 31, the Board has spent $457,379 of the advance funds.

Rent Stabilization Department Interim Executive Director Phillip Leclair said the budget will be used for hiring 12 staff, establishment of a rental registry database, securing an office location and purchase of office furniture and technology, among other things.

The bulk of the proposed 2024 budget or $1,005,426 would go to personnel costs; $1,531,500 would go to services and supplies; and $339,306 would go to Internal Service Charges.

Leclair is responsible for laying the foundation for the department’s success, overseeing key tasks such as supporting the Pasadena Rental Housing Board in executing adopted policies, implementing and managing the rental registry, hiring and managing support staff, establishing operational procedures and policies, developing office space and infrastructure, enhancing community engagement and communication efforts, and contributing to the recruitment of a permanent Executive Director.