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Recommendation to request City Manager to work with the Department of Development Services, as well as housing groups and property owner associations, to draft a report on streamlining and making the rental application credit check process more affordable through a third-party repository program, and return and present at a future Council meeting in 60-90 days.
The report should consider the following policy and program elements:
• Establish the Apartment Association, California Southern Cities
or other entity as a third-party repository, which would maintain
and distribute the credit report of the same applicant to
qualifying property owners at no charge to the property owner
or applicant for up to 90 days.
• Develop a corresponding education and outreach program
which will include a set of rental application "best practices"
for property owners and applicants.
• Include information on the policy and program within the annual
notices sent out to property owners and tenants as part of the
PRHIP program.
• For education and enforcement purposes, integrate the program
within the business licensing process for property owners with
4+ units.
DISCUSSION
According to the U.S. Department of Housing and Urban Development (HUD), 59% of Long Beach residents are renters, compared to 35% nationwide. The average amount of time it takes someone to go through the rental search, application, and approval process is anywhere between 1-3 months. In California, the application fee can cost up to $47 each time (CA Civil Code 1950.6) with some residents applying as many as six times, or spending up to $200-300 with no guarantee before they can find a unit or property owner who will accept them. This is further compounded when you consider couples or families with adult children who have to pay a fee for each person on the lease. Although the application is a significant burden on Long Beach renters, the dollar amount is cost-recovery and t...
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