How can we build more housing without pushing out the people who already live here? Many people worry that new development means losing long-standing neighbors, changing the character of their communities, or accelerating gentrification. But here’s the truth: our long-standing failure to build enough housing to accommodate our growth and vibrant economy has contributed to the housing crisis we are experiencing now.

This series of articles, over the course of the next few weeks, explores how smart policy, zoning, and tenant protections can help us produce the homes we need while keeping our communities whole.

Because we haven’t built enough to keep up in the past, our housing shortage is causing costs to rise, supply to get squeezed, and long-time residents to get priced out. Staying the same often means watching communities unravel under pressure, not preserving them.

We have to build and protect at the same time. That means using the right tools — strong tenant protections, thoughtful zoning, and smart planning — to expand housing options without displacing the people who are already here.

So how do we do it?

Part 1: Ensuring Strong Tenant Protections

Q: What tenant protection policies exist to prevent or mitigate displacement when less expensive housing is demolished?

A: Many jurisdictions have adopted policies to prevent the displacement of low income tenants. No single policy will remove all barriers and prevent all displacement, but when used together, they weave together a safety net to protect tenants who are vulnerable to displacement. 

• Tenant Relocation Assistance Ordinance (TRAO)
  • When a tenant must be evicted through no fault of their own (reasons include substantial remodeling, demolition, or removing an apartment from the rental market), the landlord must provide financial assistance to help the tenant with the anticipated move. State law requires landlords to pay the tenant a sum equal to one month of the rental price or waive the rent payment due in the final month of occupancy. Cities can put in place stronger requirements that increase the amount of financial assistance to multiple months of rent, and can also take into account additional considerations such as disability, elderly, and families with children. Some policies also include assisting tenants in finding new units, and splitting the financial assistance so that tenants can use that first payout for security deposits. 
• 1-for-1 Replacement Requirements upon demolition
  • When affordable apartments are demolished, a jurisdiction can require the developer to replace each of those affordable units with new affordable units. For example, if a developer wants to demolish a building with 12 apartments where lower-income tenants live, the new development must include at least 12 affordable apartments. 
• Right to return
  • This policy works in tandem with 1-for-1 replacement requirements. In a basic form, the tenant would have the ability to rent the newly created unit. However, the likelihood of a low income tenant being able to afford the market rent of a new unit is low, so this policy is strengthened by requiring the developer to provide the affordable housing unit to the displaced tenant at a rate affordable to them. For example, if a tenant is very low income (see this chart of income restrictions and rent limits), the developer must provide a very low income unit when it is developed. 

Q: What happens to tenants during redevelopment? 

A: Upon seeking permits and approval for redevelopment, cities should have a process in place for outreach to existing tenants so they can access this right. Here are a couple of policies to to assist staff in implementing the above protections: 

• Rent Registry
  • Jurisdictions can put in place a rent registry, which allows the city to collect data on apartments, monitor changes in tenancy and rents, and track allowable rent increases. A basic rent registry would list the number of units in a property, how much each unit rents for and if the unit is occupied or vacant. It could inform the jurisdiction of the existence of a tenant in those units and provide a method to contact the tenant. Rent registries give jurisdictions a better understanding of the experiences of its residents who are renters, and enable them to respond with policies that help ensure both tenants and landlords are protected and understand their rights. The more information the registry gathers, the more useful it is to the city. 
• Language Access
  • Language barriers can prevent existing tenants from knowing or activating their rights even when they are eligible for protections. Requiring notices in multiple languages can provide that initial information, but the jurisdiction can also provide model paperwork and language assistance– especially helpful since many small landlords may not have the resources to provide these kinds of notices. Jurisdictions should have language assistance programs in the languages most common in the jurisdiction. It is hard enough to understand housing rights, removing language barriers can make things easier. 
• Housing / Eviction Help Centers
  • Housing or Eviction Help Centers provide a place where a tenant or landlord can go for assistance from the jurisdiction to understand the laws. These centers can serve many purposes, from providing legal assistance to giving low income residents access to social safety net programs. It could also be a place to receive help to apply for affordable housing or emergency rental assistance. As this can be a large infrastructure requirement for small cities, they can partner with their emergency assistance network (EAN) provider for smaller pop-up events. Smaller cities could also set up a helpline, and ensure that their laws are easily accessible on their city’s websites.    

Q: Where can the tenant go during construction?

• Tenant Preference for Displaced Residents
  • Whenever a new affordable housing project is developed, a jurisdiction can set aside a certain number of units for residents who meet specific criteria. These are called “tenant preferences.” Example preferences for a prospective tenant includes someone who already lives or works in the jurisdiction or neighborhood, has a particular job type, or were displaced from their housing. Waitlists for affordable housing can get long, but this allows jurisdictions to prioritize some tenants. However, jurisdictions do need to be careful not to exclude people when implementing a tenant preference to remain in compliance with fair housing laws. 
• Landlord set aside units
  • A jurisdiction can incentivize and create clear guidance for landlords and developers who have larger portfolios of properties to set aside units for their tenants who have been displaced to move into. A tenant who is displaced when their apartment  is renovated or demolished could then move to a different apartment owned by the same landlord, possibly in another local property. This scenario is more common when a landlord is doing a small renovation that can be staggered unit by unit. However, if a landlord does have existing vacant units, they have the advantage of not needing new credit checks or income verifications. Jurisdictions should explore requiring the rent to be similar to the existing rent for a period of time.  

Q: What other barriers do low-income renters face during this period and when transitioning to new housing?

A: If the new development replacing the affordable rental units becomes ownership housing like condos or townhomes, tenants may face issues with mortgages, down payments and HOA (Home Owner Association) fees. Qualifying for mortgages may be difficult for low income earners, and they may also need down payment assistance. Some jurisdictions have required a developer to set aside a fund to provide mortgage or down payment assistance for residents in low income rental units if the HOA fees put them out of an affordability range. 

Opportunities still exist for creative policy solutions for displacement due to redevelopment. We need to look closely at common living conditions, and consider how a framework of policy solutions can address displacement under a range of circumstances. Our shortage of housing  is a key driver of Silicon Valley’s housing crisis, so it’s important to build more housing. It is also important that as we build we ensure that our communities remain safe and stable. With the right policies in place, we can develop more housing without displacement. 

Stay tuned for our next newsletter, where we’ll look at ways to incentivize development in areas best for growth without displacement, and more policies that combine housing production with tenant protections!