Emergency ordinance covers evictions

Santa Barbara City Council to consider proposal to protect tenants

By NEIL HARTSTEIN NEWS-PRESS STAFF WRITER

Santa Barbara City Council members vowed two weeks ago to aid longtime Santa Barbara tenants who pleaded with them for help in fighting what they claimed were unjust evictions by landlords who wanted them out so they could raise the rent.

The council members meant what they said.

At their meeting today, council members will consider passing an emergency ordinance to tighten the current definition of “nofault just cause” when it comes to residential evictions. It would close loopholes in the existing law, require landlords to show good faith and make them apply for work permits for any substantial renovations they want to make.

The council will meet at 2 p.m. at City Hall, 735 Anacapa St.

hundreds of others who could not be here. Do something with the power you have.”

The emergency ordinance is the council’s response.

The proposed ordinance would close loopholes in the law “by making it clear that any action to recover a rental unit requires good faith on the part of the landlord,” staff said.

That’s exactly what Councilmember Meagan Harmon said should be done in a previous interview with the News-Press.

“I do believe that the council should move forward to close the ‘renovation loophole’ — the intention behind our ordinance was to ensure that unjust evictions are stopped. If that intention is not being honored under the ordinance as written, if loopholes in the law are being exploited to circumvent its purpose, it is incumbent on our council to revise the ordinance so it is effective.”

By ANNIKA BAHNSEN NEWS-PRESS CORRESPONDENT

“I don’t really have another option other than to trust my bank,” explained resident Sarah Duff in response to the recent crashes of banks here in the United States, including California.

She and other concerned residents talked to the NewsPress in front of the First Republic Bank branch at 1200 State St. Santa Clara-based Silicon Valley Bank and San Franciscobased First Republic Bank have been the main West Coast banks in the crisis. The Federal Deposit Insurance Corp. took over Silicon Valley Bank.

On Thursday, 11 of the nation’s biggest banks said they were providing a $30 billion rescue package to keep First Republic Bank afloat, but the bank’s problems remain. S&P Global Ratings announced Sunday that it cut First Republic’s credit rating to “B-plus” from “BB-plus.”

On March 10, Silicon Valley Bank failed and was closed by the California Department of Financial Protection and Innovation. This was the largest bank to fail since the 2008 financial crisis.

As of Monday, regional banks across the country had share drops. First Republic Bank, the most prominent of these, had shares drop 47%, nearly 90% down since March 8. This led the New York Stock Exchange to halt trading 11 separate times Monday.

This scare within the banking system has trickled down to other banks, and it has customers worried about the future of the country’s financial system. As a result, many people have been pulling their accounts and money from their banks.

Jorge Torres, a resident of Los Angeles, shared his thoughts during News-Press interviews in front of First Republic Bank’s State Street branch.

“The big banks will be fine because they are backed by the government. If the government collapses, though, we have a problem.”

Recently the FDIC announced a “systemic risk exception,” which would allow the government to pay back uninsured depositors to prevent consequences for the failure of the bank.

Additionally, with approval from the U.S. Treasury department, the Federal Reserve said it would set up an emergency lending program to eligible banks so they can meet the needs of their account holders.

Jenna Wheeler, a San Luis Obispo resident and Santa Barbara City College student, shared her thoughts regarding the bank issues.

“I personally have confidence in my bank because it is smaller, and my family has used this bank for years. We never have had an issue, and I project there not to be one, even with all of this happening. I also know my bank is fairly stingy with loans so that makes me feel better.”

Many customers have looked into their own banks and its history, seeing if this crisis could come to them in the near future.

“I know my specific bank has had some scandals, but I feel like it is big enough to be OK,” Malibu resident Reagan Phillips told the News-Press. “I guess I have never really known enough about the banking system to have active confidence in it or not. It has been more of passive confidence.”

President Joe Biden tried to share some relief for the country over Twitter on March 14 by saying “because of actions that our regulators have already taken, every American should feel confident their deposits will be there if and when they need them.”

As the banking crisis continues, people are reacting with a mix of apprehension and hope.

“It definitely scares me a bit, but I trust that things will work out,” local resident Jill Hurin told the News-Press. “Easier to not worry about it!” email: abahnsen@newspress.com