City housing staff presented a fiscal-year update on Dec. 2 for Salinas' rental registration and rent stabilization programs, reporting that registration fees and stabilization fees produced more revenue than program expenditures in 2025.

Lisa Brinton, the housing director, told the council that the program charged $45 per unit for the rental registry and $170 per unit for the rent stabilization program. As of the last audited quarter (through Sept. 30), staff reported about 3,009 units registered in the rental registry and 8,814 units under rent stabilization, a combined total of roughly 12,000 registered units and combined receipts of approximately $1.675 million plus about $35,000 in late fees for an actual total of about $1.708 million. Based on conservative projections for October to December, staff estimated year-end revenue near $1.715 million.

Brinton outlined audited expenditures through Sept. 30 (including staff time partially offset by a $122,000 grant) and projected program-year expenditures of roughly $803,632. Under the ordinance governing the programs, staff said any excess revenue above actual expenditures must be proportionally returned to registrants; using the stated figures staff estimated a projected excess of about $911,715 to be returned once final closeout and audit are complete.

Councillors pressed staff on how to treat late fees and penalties for compliance-delayed registrants, whether penalties collected after the fiscal year close would be counted in that year's pool, and how tenant and landlord petitions were progressing. City staff and the city attorney clarified that late fees are penalties and are treated differently from fee revenue that would be subject to proportional refund; penalties are not automatically returned. Staff also said they had received a small number of petitions (five tenant petitions and seven landlord petitions), with some withdrawn after resolution.

Councilmembers asked for a reconciliation and final methodology to be presented once the city closes the fiscal year and audits the program accounts; staff said it will return in early 2026 with final numbers and a recommended refund methodology and will propose adjusted 2026 program fees to align with projected program expenditures.