The Ellis Act Ordinance applies when an owner or developer plans to demolish or remove apartments from the rental market. This Ordinance applies to apartments that are three units or more that were:

• Before 1979 and are rent stabilized subject to the Apartment Rent Ordinance. The Ellis Act Ordinance requires 50% of new apartments built on the site of previously rent stabilized apartments be subject to the Apartment Rent Ordinance. The owner is responsible for providing the noticing requirements and relocation benefits to the displaced tenant households.
• Built after 1979 and are not rent stabilized. The owner is responsible for providing the noticing requirements and relocation assistance to the displaced tenant households.

Resources

• Ellis Act Ordinance Fact Sheet
• Ellis Act Ordinance Frequently Asked Questions
• Required forms and instructions

steps to initiate the ellis act process

What to expect for owners and developers

The Ellis Act Ordinance allows a property owner seeking in good faith to recover possession of a rental unit and remove units from rental housing use if the property owner plans on demolishing or permanently withdrawing the units from the rental housing market. First, please determine if your property is rent stabilized or non-rent stabilized. Please contact Rent Stabilization Program staff at 408-975-4480 to set up a meeting. 

Step 1: Complete the required forms and instructions. All households must be provided with a minimum of 120 days’ notice. Special populations including residents over the age of 62, disabled, terminally/catastrophically ill, and residents with school-aged children must be given up to one-year notice.

Step 2: Set up bank account for Escrow for the relocation fees. The bank must have a branch in the City of San José. Relocation fees are based on bedroom size. Tenant household may be eligible to receive additional relocation benefits depending on special eligibility.  Relocation counseling fee for tenant household must be paid to the City prior to the service of the Notice of Intent to Withdraw to tenant household.   

Step 3: Prepare the filing fees. For 2022-2023, the filing fee is $2,833 for the first 10 units and $951 per additional unit after 10 units.

Step 4: Submission to the City to RSP@sanjoseca.gov. Copies of each form must be sent to the City within 10 days of service to tenant households.

Step 5: At the time of delivery of the Notice of Intent to Withdraw to each tenant household, the owner must deposit into the escrow account the relocation fees. Any additional relocation benefits must be deposited into the escrow account as soon as the completed tenant qualification forms has been verified by the relocation specialist and approved by the City.  

Step 6: If the apartments return to the rental market within ten years, tenants have a right to return to their apartments. If the apartment is demolished and rebuilt, the right to return does not apply. 

Step 7: If an owner is offering to rent newly built apartments where former rent stabilized units existed, they must inform the City how they will satisfy the re-control provisions by either re-controlling a portion of the units or providing 20% onsite affordable rental units. If re-control applies, the owner must register each of the newly constructed rent stabilized units. Onsite affordable units must meet the standards and affordability restrictions under the Inclusionary Housing Ordinance. 

Ellis Act WITHDRAWAL Process

What to Expect for Tenants

A property owner may recover possession of a rental unit either to demolish it or to remove it permanently from rental housing use. If you receive an Ellis Act Ordinance notice from your owner because your owner wishes to take over the rental unit, you can expect the following:

• You will receive a Notice to Withdraw that has been filed by your owner.
• Your case will be referred to the City’s Relocation Consultant to provide you support during your relocation.
• The amount of relocation fees you may be entitled to will be determined.

Your Rights and Responsibilities

• 120-Day Notice: You are entitled to a 120-Day Notice.
• One-Year Extension: You may be entitled to a one-year extension from the date the owner delivered the Notice of Intent to Withdraw if you are low-income, over the age of 62, disabled, terminally or catastrophically ill, or have school-aged children.

Relocation Assistance

You may be entitled to relocation assistance. The City’s Relocation Consultant will determine the amount of relocation benefits you are entitled to, otherwise the determination will be based on the information provided by your owner.

Free viewers are required for some of the attached documents.
They can be downloaded by clicking on the icons below.

Acrobat Reader Windows Media Player Word Viewer Excel Viewer PowerPoint Viewer