Rental Housing Board Mulls Charging Landlords $213 Per Unit

A consultant for the Pasadena Rental Housing Board (PRHB) proposed that the Board charge landlords an annual fee of $213 per rental unit to fund the Board’s operations. 

The Measure H Charter Amendment specifies that the Rental Board will finance its program expenses by charging an annual rental housing fee to landlords. As per the Charter Amendment, landlords are not allowed to pass on these fees to tenants. 

According to data gathered by Board consultant BHYV, there are a total of 31,316 rental units in Pasadena. 

The rental housing fee collected from landlords for these units will cover the annual costs needed to fund the operations of the Board, which will soon operate Pasadena’s new Rent Stabilization Department. 

According to bhyv, the department needs $5.9 million annually to operate. 

The bulk of this goes to personnel costs, which are projected at $4.3 million. 

bhyv proposes a department structured into five divisions — (Administration and Policy, Public Information and Outreach, Hearings, Rent Registration, and Legal) — with a total of 22.5 full-time employees.

The projected annual expenses include costs for IT support at $249,500, office rental at $216,000 and Rental Board compensation at $145,150.

For the first year, the Board is also paying one-time costs for initial IT and office set up amounting to $765,000. 

“That’s only about the cost of a Netflix subscription,” a public commenter who introduced herself as Brigitte said about the $213 rental housing fee. “This is small and totally reasonable.”  

Another public commenter Adam Bray-Ali however urged the Board to consider implementing a tiered pricing structure.

“Within Pasadena, there are very expensive rents and there are a lot of people with very low rents. Those rents are now going to increase,” said Bray-Ali. “If somebody is paying $600-$700 a month rent and that landlord is being asked to pay $200 per year, it’s a much larger percentage of the rent. It becomes much more onerous and much more difficult for that property owner to pay for things.” 

The rental housing fee will be recalculated each year as part of the Board’s approval of the Rent Stabilization Department’s budget. 

According to Chanee Franklin Minor from bhyv a final cost analysis and budget recommendation will be presented to the Board for approval in January.

“We can amend this report,” said Chair Ryan Bell. “There are many among us who may need more time to get through the materials than others.”

As regards staffing, bhyv recommended that the Board prioritize the hiring of a permanent Department Director, housing counselors, senior hearing officers, management analyst and customer service representative in the next six months.

bhyv’s proposed budget, rental housing fee and staffing model was reviewed for information only purposes. No action was taken.