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Any accommodations which have been withdrawn from rent or lease and which were subject to rent control at the time of withdrawal, shall be subject to the following conditions and restrictions if said accommodation is again offered for rent or lease:

A. For all tenancies created after December 31, 2002, and commenced during either of the time periods described in subsections 1 and 2 below, the accommodations shall be offered and rented or leased at the lawful rent in effect at the time any notice of intent to withdraw the accommodations was filed with the City, or its designated agency, plus annual adjustments available under the rent control system.

1. The five-year period after any notice of intent to withdraw the accommodations is filed with the City, or its designated agency, whether or not the notice of intent is rescinded or the withdrawal of the accommodations is completed pursuant to the notice of intent.

2. The five-year period after the accommodations are withdrawn.

3. This section shall prevail over any conflicting provision of law authorizing the landlord to establish the rental rate upon the initial hiring of the accommodations.

B. If the accommodations are offered again for rent or lease for residential purposes within two years of the date the accommodations were withdrawn from rent or lease, the following provisions shall apply:

1. The owner of the accommodations shall be liable to any tenant who was displaced from the property by said withdrawal for actual and punitive damages. Any action by a tenant pursuant to this paragraph shall be brought within three years of the tenant’s displacement. However, nothing in this paragraph shall preclude a tenant from pursuing any additional or alternative remedy available under law, including, but not limited to general damages. Nothing in this paragraph shall limit or otherwise affect any relocation benefits to which the tenant is entitled under any other law or ordinance.

2. The City, or its designated agency, may institute a civil proceeding against any owner who has again offered accommodations for rent or lease subject to this section for exemplary damages for displacement of tenants. Any action brought by the City or its designated agency shall be brought within three years of the withdrawal of the accommodations. Nothing in this section shall be construed to limit any other powers of the City or its designated agency to pursue litigation in any way involving the subject property.

3. Any owner who offers accommodations again for rent or lease shall first offer the unit for rent or lease to the tenant displaced from that unit by the withdrawal, if the tenant has advised the owner in writing within 30 days of the displacement of their desire to consider an offer to renew the tenancy and has furnished the owner with an address to which that offer is to be directed. That tenant or former tenant may advise the owner at any time during the period of eligibility for renewed tenancy of any change in address to which the offer is to be directed. The owner shall also notify the City or its designated agency of the owner’s intent to again offer the accommodations for rent or lease at the time the tenant is notified. In addition to the notice required to be given to the tenant, the City or its designated agency shall be deemed to be an agent of the tenant and may request that an offer to renew the tenancy be extended to the tenant. However, nothing in this section shall be construed to relieve the owner of the obligation to directly contact the tenant or former tenant and to advise the tenant that said accommodations are again offered for rent or lease. Notice shall be on a form approved by the City or its designated agency.

4. If the owner offers the accommodations for rent or lease pursuant to this subdivision, and the tenant has advised the owner of a desire to consider an offer to renew the tenancy, then the owner shall offer to reinstitute a rental agreement or lease on terms permitted by law to that displaced tenant. The terms shall be substantially equivalent to those formerly existing during the tenancy. This offer shall be deposited in the United States mail, by registered or certified mail with postage prepaid, addressed to the displaced tenant at the address furnished to the owner as provided in this subsection, and shall describe the terms of the offer. A copy of the notice with proof that it has been mailed to the displaced tenant shall be filed with the City or its designated agency at the time notice is mailed to the tenant. The displaced tenant shall have 30 days from the deposit of the offer in the mail to accept by personal delivery of that acceptance or by deposit of the acceptance in the United States mail by registered or certified mail with postage prepaid. The City or its designated agency upon learning of the owner’s intent to again offer the accommodation for rent or lease shall also attempt to notify each tenant by mail and may further publish notices or advertisements in newspapers or use other reasonable means to attempt to notify the tenants of the availability of the accommodations.

C. An owner who offers accommodations again for rent or lease within ten years of the date on which they are withdrawn shall notify the City or its designated agency of an intention to offer the accommodations again for residential rent or lease. A copy of the notice served on the City or its designated agency shall also be mailed by the owner to each tenant at that tenant’s last known address. The City or its designated agency may also attempt to notify each tenant by mail and may further publish notices or advertisements in newspapers or use other reasonable means to attempt to notify the tenants of the availability of the accommodations. If the displaced tenant so requests in writing within 30 days after the owner has notified the City or its designated agency of the intent to again offer the premises for rent or lease, the owner shall offer to reinstitute a rental agreement or lease on terms permitted by law to that displaced tenant. In the event that the owner fails to comply with this subsection, the owner shall be liable to any affected tenant for general damages and punitive damages in an amount which does not exceed the contract rent for six months.

D. If the accommodations are demolished, and new accommodations are constructed on the same property, and offered for rent or lease within five years of the date the accommodations were withdrawn from rent or lease, the newly constructed accommodations shall be subject to rent control notwithstanding any provision of law which otherwise exempts newly constructed units. The City or its designated agency shall have the power to set rents which will provide a fair return and the landlord shall have the burden of establishing by competent evidence that the rent schedule proposed by the landlord is necessary to provide a fair return. (Ord. 6767-NS § 1 (part), 2003: Ord. 6529-NS § 4, 2000: Ord. 5732-NS § 1 (part), 1986)