Rental Board Seeks New Approach After Rent Withholding Strategy Produced Negligible Results

The Pasadena Rental Housing Board confronted challenges to the enforcement of its mandatory rental unit registration program at Thursday night’s Board meeting after a plan for tenants to withhold rent to noncompliant landlords produced negligible results.

Of the 6,815 notices sent to tenants informing them they could withhold rent from landlords who failed to register their properties, only three tenants filed petitions to use the mechanism, Board members learned at a recent meeting.

“Nonpayment of rent is a slam dunk eviction,” said Helen Morales, the Board’s director, explaining why tenants apparently have avoided the compliance tool despite widespread non-registration by landlords.

The stark numbers prompted Board members to examine the current mechanism and begin exploring alternatives centered on direct penalties against property owners rather than tenant-initiated actions.

Multiple Board members expressed particular concern that tenants face significant legal risks when withholding rent, noting that Superior Court judges are not required to recognize administrative hearing orders as valid defenses against eviction proceedings.

In response to the unproductive strategy, the Board began exploring alternative strategies to encourage landlord registration, with the primary focus emerging as implementing a robust system of penalties and fines.

Discussion centered around creating a penalty structure that would be retroactive, financially significant, and potentially include property liens against non-compliant owners.

Board members cited existing municipal enforcement systems, such as parking ticket collections, as models for the new compliance framework.

Board Member Peter Dreier proposed additional public accountability measures, including publishing a “scoff law” list of non-compliant landlords and requiring public postings of non-compliance in rental properties.

“We need as many tools as possible to get them to do this,” Dreier said.

The Board directed staff to research the legal authority for implementing independent penalties, study enforcement systems in other jurisdictions, and develop comprehensive compliance recommendations. Staff is scheduled to return with detailed proposals for fine structures and enforcement mechanisms.