Extended Family Occupancy Program

                          RENT CONTROL BOARD
                    EXTENDED FAMILY OCCUPANCY PROGRAM

  3201. Separate Agreements

  (a) Any payments by the tenant to the landlord, including payments for
        parking, pets,  furniture or  facilities, equipment  or services
        which are connected  to the  use and  occupancy of  the unit are
        included as rent  as defined by  Section 1801(f)  of the Charter
        unless the agreements for such payments meet all of the standards
        of this section. Except as  expressly provided in subsection (f)
        below, no separate  agreements shall be  permitted which require
        extra payments for additional occupants.

   [3201(a) Amended 8/12/93; Effective 8/20/93]

  (b) "Base Rent  Date" is defined  as April  10, 1978, or  the date the
        base rent was  established if  it was  established subsequent to
        April 10, 1978.  If the  facilities, equipment  or services were
        provided on the  base rent date,  and were not  provided under a
        separate agreement on the base rent date, a new charge cannot be
        added to  the  tenant's  payments  in  addition  to  the maximum
        allowable rent. To be a separate agreement on the base rent date,
        the agreement must meet all of the conditions in subsection (d) of
        this section.

  (c) If the particular facilities, equipment  or services have not been
        previously included within the maximum allowable rent as set forth
        in (b) above, the landlord may offer such facilities, equipment or
        services to the tenant under the  terms of a separate agreement,
        provided it conforms with this section.

  (d) An agreement may be considered  separate from the rental agreement
        if it meets all the following criteria:

        (1) The agreement to pay a separate fee for the use of the
              facilities, equipment  or  services  must  have been
              negotiated separately from  the negotiation  for the
              rental of the rental  unit, with no  pressure on the
              tenant to accept the  separate agreement or separate
              fee as a condition of the rental of the apartment.

        (2) The terms of the agreement  are comparable to those of
              similar  lawful   arrangements  obtainable   in  the
              unregulated market.

        (3) The continued  existence of  the arrangement  is not a
              condition of the tenancy and the tenant's termination
              or breach of the separate  agreement is not a ground
              for eviction.

  (e) This  section  is  declarative of  existing  policy  and  does not
        represent a change in policy.

  (f) For a  controlled rental  unit for  which the  landlord and tenant
        mutually agree that an additional  family occupant may reside in
        the rental unit as a long-term guest, resulting in an increase in
        the number of lawful occupants, the  landlord and the tenant may
        enter into a separate agreement to add a maximum monthly surcharge
        of seventy-five  dollars  ($75.00)  for  each  additional family
        occupant, not to exceed a total aggregate monthly surcharge of two
        hundred and  twenty-five  dollars  ($225.00).  The  landlord and
        tenant may further agree to increase the security deposit pursuant
        to Regulation 14003(a).

        (1) The additional  family occupant separate  agreement shall be
              in writing  and  shall  contain  all  relevant  terms  and
              conditions as  set forth  in  this subsection.  The family
              occupant separate agreement must be  signed by the tenant,
              the landlord or his or  her authorized representative, and
              the  family  occupant(s).  The  agreement  must  be  fully
              executed prior to the commencement of the occupancy.

        (2) "Family occupant" is defined  as follows: the adult children
              (natural or  adopted);  parents;  grandparents;  brothers;
              sisters;  fathers-in-law;   mothers-in-law;   sons-in-law;
              daughters-in-law;  nieces;  nephews;  aunts;  uncles;  or,
              grandchildren of the tenant; or, any minor children of the
              persons set forth above.

        (3) "Long-term  guest" is  defined  as any  family  occupant who
              resides in the rental unit for more than thirty (30) days.

        (4) The family occupant surcharge shall not increase the maximum
              allowable  rent  for  the   controlled  rental  unit.  The
              surcharge shall only be in effect so long as the additional
              family occupant(s) continue to reside  in the unit, or the
              original tenant vacates, whichever is sooner.

        (5)  No  surcharge  shall  be   collected  or  paid  under  this
              subsection unless the presence of the additional occupant(s)
              is a violation of an existing rental agreement pursuant to
              Section 1806(b) of the Rent  Control Charter Amendment and
              Board Regulation 9007.

        (6)  No  surcharge  shall  be   collected  or  paid  under  this
              subsection under any of the following circumstances:

              (a)   The agreement is a condition of occupancy;

              (b) The  right  to  a  roommate  is  a  "housing  service"
                    pursuant to Regulation 2004 a.;

              (c) The  increase in  occupancy  occurs as  the  result of
                    marriage, birth, adoption or change in legal custody
                    of a minor child of whom the tenant head of household,
                    spouse or  family occupant  is  the parent  or legal
                    guardian, and  provided that  the occupancy  of said
                    minor  child  is  otherwise  lawful.  (Santa  Monica
                    Municipal Code Section 4.28.030);

              (d) The increase in occupancy occurs  as the result of the
                    placement of a minor foster child in the residence of
                    a tenant who  is licensed by  the appropriate local,
                    state or federal authority as a foster parent;

              (e) The additional occupant residing in the rental unit is
                    a healthcare provider as defined in Regulation 2005;

              (f) The  additional family  occupant agreement  is entered
                    into within six (6) months of the commencement of the
                    tenancy.

        (7) No party  is compelled to  enter into  a separate agreement.
              In deciding  whether  to  to  agree  to  enter  into  such
              agreement, the  landlord  may  apply  reasonable standards
              commonly accepted  in  screening  tenants,  provided  that
              approval is not unreasonably withheld.

        (8) Additional  family  occupants  in  controlled  rental  units
              subject to a separate agreement pursuant to this subsection
              are guests and are not tenants as defined in Section 1801(i)
              of the Charter, and shall not be obligated to pay, nor are
              prohibited from  paying,  consideration to  the  tenant in
              exchange for the use or occupancy of the unit.

              (a)  Once  the  separate   agreement  is  fully  executed,
                    landlords shall not thereafter challenge the "family
                    occupant" status of the additional occupant, nor shall
                    tenants and family occupants thereafter challenge the
                    status of family  occupants as  "guests" pursuant to
                    this regulation.

              (b) Once  the  separate agreement  is  fully  executed, it
                    shall be  terminated  only as  follows:  upon mutual
                    written agreement between the parties; vacancy by the
                    family occupant and written notice to the landlord by
                    the tenant that the family occupant has vacated; the
                    voluntary vacancy  of  the  tenant;  breach  of  the
                    agreement by the tenant, landlord or family occupant;
                    or, the  tenant and/or  family occupant  is lawfully
                    evicted pursuant to Section 1806 of the Charter.

              (c) In  the  event of  a  breach of  the  written separate
                    agreement by any party, any other party may, at his or
                    her option, terminate the agreement unilaterally, upon
                    written notice to the other parties and/or pursue any
                    other legal remedies available under state law.

              (d) Breach of this agreement shall not  act as a breach of
                    any rental housing agreement between the landlord and
                    tenant.

              (e) If  the  tenant  voluntarily vacates  the  unit  or is
                    lawfully evicted  pursuant  to Section  1806  of the
                    Charter, or if the agreement is terminated pursuant to
                    this regulation,  the additional  family occupant(s)
                    must vacate  the unit  unless the  additional family
                    occupant(s)  and  the  landlord  enter  into  a  new
                    residential rental agreement for the use and occupancy
                    of the unit.

              (f) In the  event that  the family  occupancy agreement is
                    terminated as set forth above, the landlord's right to
                    retain the additional security  deposit shall expire
                    thirty (30) days  thereafter, and  the landlord must
                    refund  the  additional  security   deposit  to  the
                    tenant(s) within the  thirty-day period,  subject to
                    Civil Code Section 1950.5 (Regulation 14003(b).)

        (9) Absent  a  valid written  family  occupancy  agreement, this
              regulation shall not effect the legal rights of any occupant
              of a residential rental unit.

        (10) Regulation 3201(f) shall  expire automatically on September
              1, 1995, unless extended by  the Board. No family occupant
              separate agreement executed on or after that date shall be
              enforceable. Any fully  executed family  occupant separate
              agreement in existence as of September 1, 1995 shall remain
              in effect until such  time as the  agreement is terminated
              pursuant to Section 3201(f)(8)(b) or (c).

  (g)  As  a  result  of  the  January   17,  1994  earthquake  and  its
        aftershocks, many tenants have been displaced and buildings have
        been deemed uninhabitable by the City of Santa Monica (yellow or
        red-tagged). In  order to  provide  short-term housing  to those
        persons displaced, the landlord and tenant of a controlled rental
        unit may enter into a separate agreement to add a maximum monthly
        surcharge of seventy-five  dollars ($75.00)  for each additional
        person (non-family member)  the tenant  wishes to  reside in the
        rental unit  as a  long term  guest  after displacement  from an
        uninhabitable building as determined by the City of Santa Monica
        (i.e., yellow  or  red-tagged  building).  The  maximum  monthly
        surcharge shall not exceed a total aggregate monthly surcharge of
        two hundred twenty-five dollars ($225.00).

        (1) The agreement  shall be subject  to the  same procedural and
              substantive requirements as provided for additional family
              occupants separate agreements in section (f) above, except
              that any  party may  terminate the  agreement on  or after
              January 17, 1995, upon thirty (30) days written notice.

        (2) The provisions of  Board regulation 2004  shall not apply to
              these agreements.

        (3) This subsection  shall expire by  its own  terms without the
              necessity of repeal by the Board on January 17, 1995, unless
              extended  by  the  Board.   Any  agreement  for  long-term
              occupants entered into prior to  that date may be extended
              indefinitely by mutual consent of the parties.

  (h) The demand, receipt, acceptance or  retention of any payments made
        as the result of  a separate agreement, which  do not conform to
        Regulation 3201  shall  be considered  excess  rent  pursuant to
        Section 1809 of the Rent Control Charter Amendment and Chapter 8
        of the Board's regulations.

   [3201(g)(h) Amended 1/27/94;