Second Vote by the CIty Council on St George Rent Caps on Tuesday, September 24th, 2024 resulted in another 7-0 unanimous vote in favor of St George residents and similarly situation downtown apartment buildings. We again thank Mayor Fred Keeley, Vice Mayor Renee Golder, Councilmembers Sandy Brown, Sonja Brunner, Shebreh Kalantari-Johnson, Scott Newsome, Martine Watkins, and City Attorney Tony Condotti for their support and assistance. Watch this space for press stories about the stressful journey of St George residents and the community at large which assisted them in achieving their goal.

City Council Votes 7-0 to cap rent increases at St George! 2024 increase to be 8.8% not 100% to 255%. A unanimous vote helps St George Residents avoid displacement. We thank Mayor Fred Keeley, Vice Mayor Renee Golder, Councilmembers Sandy Brown, Sonja Brunner, Shebreh Kalantari-Johnson, Scott Newsome, Martine Watkins, and City Attorney Tony Condotti for their support and assistance.

Today is the day: City Council Meeting of September 10th, 2024. Agenda Item #30 St George Rent Increases to be heard at approximately 4:30 PM. Meeting starts at 1:30 PM. Meet at the fountain outside City Council chamber between 3:30 and 4:00 PM. This is your chance for your voice to be heard.

https://lookout.co/santa-cruz-city-council-to-vote-to-restrict-rent-hikes-at-st-george-and-other-buildings-like-it-in-the-city/

Breaking News at the Above link: City Council to Vote September 10th, 2024 to Restrict Rate Hikes at St George and Other Buildings Like it

Who We Are: We are an independent and united group of residents from the St. George Apartments in Santa Cruz, California. Our mission is to provide resources, advocacy, and a strong voice for tenant rights and accessibility issues, with a special focus on protecting the long-term residents of St. George Apartments in downtown Santa Cruz.

What We Want: We ask that the Department of Justice (DOJ) and the Housing and Community Development department (HCD) re-examine Green Valley Corporation’s (GVC-St. George) compliance with the settlement agreement and permanent injunction they reached with Attorney General Rob Bonta's office in May 2023. This pre-discovery settlement, following an thorough 18-month investigation, imposed strict conditions on Green Valley Corporation for five years—from May 2023 to May 2028. Despite being fined $60,000 in punitive damages and ordered to pay over $331,000 in restitution for illegal rent increases and six illegal evictions, GVC-St. George is now proposing outrageous rent hikes of up to 255%—less than 15 months after being penalized for illegal 151% rent increases. The residents of St. George, who deserve nothing less than fair treatment, deserve answers.

Additionally, we request that Mayor Fred Keeley and the Santa Cruz City Council direct the City Attorney to investigate and report back on whether the notices provided to affected St. George residents are defective. Special attention should be given to the year 2011 and the claims made by GVC-St. George (a Delaware LLC registered by Green Valley Corporation). A superseding and/or concurrent deed restriction was recorded, which had affordable rent requirements that did not expire until 2021—a full decade later. This could render the notices provided to tenants, and the claims made by Green Valley Corporation, defective and challengeable under California state law.

Why We Need the Attorney General’s Office to Re-Open Their Investigation: Dozens of St. George residents are at risk of displacement, and without exaggeration, some could be forced into homelessness. Case law consistently shows that a landlord’s interests must be balanced with the needs of their residents. We believe there is currently a grave imbalance, especially given the extreme rent increases by a property owner who has already benefited significantly—tens of millions of dollars in appreciation, rent, and favorable financing. This included an initial loan of almost $7 million that required no interest or principal payments for a period of twenty years, from 1991 until 2011. It was only around 2011 that this loan was refinanced with a traditional loan, a year that may hold particular significance here.

In California, city councils have the authority to direct their city attorneys to take legal action that protects the interests of the city's residents, particularly in matters concerning tenant rights. This power is especially relevant when state laws, like the Ellis Act or the Tenant Protections Act, are invoked by landlords. The Ellis Act allows landlords to withdraw rental properties from the market, often leading to tenant evictions. However, its application has been challenged when used as a pretext to bypass rent control laws, as seen in the City of Santa Monica v. Sung case.

Why We Need the Help of Mayor Keeley and the Santa Cruz City Council: In the Sung case, the Santa Monica City Council instructed its city attorney to challenge a landlord's use of the Ellis Act, arguing that it was being used improperly to circumvent rent control ordinances. This case sets a significant precedent, demonstrating that city councils can and should intervene when state laws are potentially misapplied to the detriment of their residents. By leveraging this authority, the city council ensures that state laws like the Ellis Act, the Tenant Protections Act (AB 1482), and the Homelessness Reduction Act (SB 567) are not abused to erode tenant protections.

For the 70 affected residents at St. George Apartments, the Santa Cruz City Council has a similar responsibility. The council should direct its City Attorney to scrutinize any claims of exemption from AB 1482 or misuse of the Tenant Protections Act by Green Valley Corporation. This intervention is crucial to ensure that state laws are not being exploited to harm tenants and to uphold the rights and interests of the community in accordance with both state and local laws.

The expertise of the City Attorney is critical in evaluating the validity of the 12-month and 6-month notices provided to St. George residents. These notices contain claims based on the expiration of an unrecorded document from 2011, raising significant questions about their legal standing. Additionally, evidence suggests that a deed restriction involving affordable housing did not expire until 2021, which could impact the legality of the proposed rent increases.

According to California Civil Code Section 1947.13, "Any determination of exemption must be based on the latest recorded deed restriction, and previous restrictions that have expired shall not be used to justify exemptions." This statute mandates that exemption claims must reference the most recent deed restriction, not one that expired over a decade ago. The City Attorney's analysis is essential to determine if these notices are defective and to ensure that the rights of St. George residents are protected under the law.

What You Can Do:

• As residents of the St. George Apartments: Attend the weekly meetings and contact Mayor Fred Keeley and your District 4 City Council member, Scott Newsome. If you reside in the City of Santa Cruz but outside the boundaries of District 4, contact your City Council member to ensure this issue is placed on the agenda for a future City Council meeting. If three City Council members collaborate, the rent increases affecting St. George can be properly discussed as an agenda item.

• As concerned citizens: Sign up for email updates—no personal information is required.

• As members of the Attorney General’s Office, Housing and Community Development (HCD), or the Department of Fair Employment and Housing (DFEH): Contact us via the email provided on this website or at kc@deposums.com

• Read the terms of the settlement agreement here.

Check this site regularly for updates.