San Francisco Rent Board News Archive: 2001

December 31, 2001

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Proposition H Advisory #19 - 12/19/01

Judgment in Quigg vs. City and County of San Francisco, et al., Superior Court Case Number 316928 was issued. The court found that Proposition H"s restrictions on capital improvement passthroughs were unconstitutional and prohibited the City from enforcing Proposition H, with the exception of the bond passthrough amendment in Section 37.3(a)(6) and the 7% cap on operating and maintenance expense increases in Section 37.3(b)(2). The City filed an appeal of the court"s ruling on December 14, 2001.

In accordance with the trial court"s decision, the Rent Board has resumed processing of capital improvement petitions. If the courts allow Proposition H to go into effect in the future, decisions issued by the Board will have to be revised in accordance with the provisions of Proposition H.

Up-to-Date Information on Implementation of Proposition H

Information concerning the Rent Board"s development of forms, regulations and procedures, as well as the status of legal actions to challenge Proposition H, may be obtained from the Rent Board in the following ways:

Web site: www.ci.sf.ca.us/rentbd/ under "What"s New"

24-Hour Recorded Information Line: 415.252.4600, Menu No. 46, "Proposition H-Current Status"

Fax Back: 415.252.4660, Document Number 014, "What"s New/Amended"

We will keep the information available from these resources current. Should you have questions that are not answered in these resources, you can also call our counseling staff at 415.252.4602 from 9-12 am and 1-4 pm, Monday through Friday.

 

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New Petition Form-1.21 Determination Petition

December 12, 2001

 

NEW PETITION FORM-1.21 DETERMINATION PETITION

In response to the Commission amendment defining a tenant"s permanent place of residence (Rules and Regulations Section 1.21), a petition form has been created to handle these issues. Owners who believe that they are eligible for a rent increase under this section must file their petition with the department BEFORE giving a notice of rent increase.

Owners are reminded that this section has a limited application. Tenancies where there are other persons in occupancy besides the primary tenant may not qualify for a 1.21 increase. However, an owner may be eligible for an increase pursuant to Costa Hawkins state legislation or under the provisions of Rule 6.14. Please review the instruction sheet with this petition for more information. Owners are not obligated to petition for a determination with respect to Costa Hawkins or 6.14, but some owners prefer to have our ruling before taking any action. An owner can request a determination on any or all of the aforementioned laws or regulations.

The form is available on our web site in the Forms Center or on our fax back service, 415.252.4660, document No. 042.

 

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Governor Signs Senate Bill 985, Effective 1/1/02 (11/7/01)

January 1, 2002. The first change is limited to Los Angeles, West Hollywood and Santa Monica, while the rest of the changes are applicable state-wide:

 

1. In the cities of Los Angeles, West Hollywood and Santa Monica only, tenants must be given a 60 day notice (rather than a 30 day notice) of termination of tenancy under new Civil Code Section 1946.1 for no-fault evictions where the tenant has lived in the unit for at least one year. The additional notice period does not apply to a single family dwelling or condo which has been sold and the purchaser intends to reside in the property for at least one year. This is a pilot program limited to the three cities for three years, but housing advocates will try to extend the provisions state-wide in the next legislature session.

2. Civil Code Section 1954.52(a) of Costa-Hawkins was amended to provide that condominium units which have not yet been sold by the subdivider are not exempt from rent control unless the subdivider resides in the unsold unit. This minor amendment addresses the rare situation where the subdivider rents rather than sells the units after converting the units to condominiums.

3. Civil Code Sections 1962, 1962.5, and 1962.7 were amended to require landlords to disclose in writing, either in the rental agreement or upon request of the tenant in the case of an oral agreement, information concerning how and to whom rent payments should be made. Landlords are also required to provide a copy of the rental agreement or a written statement of its terms upon the tenant"s request once each year.

4. Code of Civil Procedure Section 1161 was amended to require that a three-day notice to pay rent or quit, in addition to stating the amount of rent due, must also state the name, telephone number, and address of the person to whom rent payment shall be made, plus information concerning the manner in which payment shall be made. Failure to include the required information would presumably invalidate the notice and defeat the eviction action.

Click here for a link to the chaptered bill.

 

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Proposition H Advisory #18 - 11/2/01

summary judgment in Quigg vs. City and County of San Francisco, et al., Superior Court Case Number 316928 was issued. The court found that Proposition H"s restrictions on capital improvement passthroughs were unconstitutional and prohibited the City from enforcing Proposition H, with the exception of the bond passthrough amendment in Section 37.3(a)(6) and the 7% cap on operating and maintenance expense increases in Section 37.3(b)(2). The City has until December 17, 2001 to file an appeal of the court"s ruling.

In accordance with the court"s decision, the Rent Board has resumed processing of capital improvement petitions. Petitions that previously were subject to the Moratorium are being heard first, and these hearings should be completed by the end of 2001. If the courts allow Proposition H to go into effect in the future, decisions issued by the Board will have to be revised in accordance with the provisions of Proposition H.

Up-to-Date Information on Implementation of Proposition H

Information concerning the Rent Board"s development of forms, regulations and procedures, as well as the status of legal actions to challenge Proposition H, may be obtained from the Rent Board in the following ways:

Web site: www.ci.sf.ca.us/rentbd/ under "What"s New"

24-Hour Recorded Information Line: 415.252.4600, Menu No. 46, "Proposition H-Current Status"

Fax Back: 415.252.4660, Document Number 014, "What"s New/Amended"

We will keep the information available from these resources current. Should you have questions that are not answered in these resources, you can also call our counseling staff at 415.252.4602 from 9-12 am and 1-4 pm, Monday through Friday.

 

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New Bond Passthrough Worksheet for 2001-02 Available (10/1/01)

The factor for the tax year 2001-02, beginning November 1, 2001 is .025. The calculation worksheet for this year, as well as for applicable prior years is available on our "Fax Facts" fax back system by dialing 415.252.4660, following the voice prompts and entering document number "056". Remember, passthroughs for bond measure costs can only be imposed on the tenant"s anniversary date, must NOT be included in the base rent and must be discontinued after 12 months.

Please see the worksheet for more details.

 

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New Rule 615.C Master Tenants Passed (08/21/01)

Regulations, Section 6.15C. These amendments are intended to ensure that rents are equally shared between tenants and Master Tenants and that those tenants of Master Tenants do not pay an unfair portion of the rent. This section became law as of its adoption on Tuesday August 21, 2001.

Section 6.15C Master Tenants

(3) Partial Sublets. In the event a Master Tenant does not sublease the entire rental unit, as anticipated in Section 37.3 (c), then the Master Tenant may charge the subtenant(s) no more than the subtenant(s) proportional share of the total current rent paid to the landlord by the Master Tenant for the housing and housing services to which the subtenant is entitled under the sub-lease.

(a) The allowable proportional share of total rent may be calculated based upon the square footage shared with and/or occupied exclusively by the subtenant; or an amount substantially proportional to the space occupied by and/or shared with the subtenant (e.g. three persons splitting the entire rent in thirds) or any other method that allocates the rent such that the subtenant pays no more to the Master Tenant than the Master Tenant pays to the landlord for the housing and housing services to which the subtenant is entitled under the sublease. In establishing the proper initial base rent, additional housing services (such as utilities) provided by, or any special obligations of, the Master Tenant, or evidence of the relative amenities or value of rooms, may be considered by the parties or the Rent Board when deemed appropriate. Any methodology that shifts the rental burden such that the subtenant(s) pays substantially more than their square footage portion, or substantially more than the proportional share of the total rent paid to the landlord, shall be rebuttably presumed to be in excess of the lawful limitation.

(b) The Master Tenant or subtenant(s) may petition the Board for an adjustment of the initial rent of the subtenant.

(c) If a portion of a capital improvement passthrough or a utility increase is allocated to a subtenant, it must be separately identified and not included in the subtenant"s base rent. Such amounts are subject to the rules herein and must be discontinued or recalculated pursuant to the applicable rules. Any amount that is improperly calculated or not properly discontinued shall be disallowed.

(d) In the event of any dispute regarding any allowable increase, or allocation, or any rental amount paid that is not rent, the subtenant may file a claim of unlawful rent increase to have the matter resolved between the subtenant and Master Tenant, as if the Master Tenant were the owner of the building. Disallowed or improper increases shall be null and void.

(e) For any sublease entered into on or before August 22, 2001, where the sublease rent was not calculated as provided for herein, the Master Tenant shall have six months from the effective date of this regulation to notice an adjusted proper rent and refund any overpayments paid after the effective date of this section. No petitions alleging overpayments may be filed during this time.

(f) For any sublease entered into after August 22, 2001, where the sublease rent was not calculated as provided for herein, the portion of the subtenant"s rent that is in excess of the amount allowed pursuant to this Section 6.15C(3) shall be null and void.

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Proposition H Advisory #17 (8/8/01)

Summary Judgment in Quigg vs. City and County of San Francisco, et al., Superior Court Case Number 316928. The court stated that Proposition H’s restrictions on capital improvement passthroughs were unconstitutional and could not go into effect. The court therefore declined to rule on whether the retroactivity sections of Proposition H also violated owners’ vested rights. The court will therefore sign an order prohibiting the City from enforcing Proposition H with the exception of the bond passthrough amendment in Section 37.3(a)(6) and the 7% cap on operating and maintenance expense increases in Section 37.3(b)(2). The temporary Moratorium Ordinance preventing the Rent Board from processing capital improvement petitions will terminate when the judge signs the order, which he is expected to do on Thursday, August 9, 2001.

As soon as the order is signed, capital improvement petitions that were subject to the Moratorium will be heard and decisions will be issued on a priority basis. Since the Rent Board has already scheduled hearings through the first week of September, petitions will be heard beginning in mid-September.

Up-to-Date Information on Implementation of Proposition H

Information concerning the Rent Board"s development of forms, regulations and procedures, as well as the status of legal actions to challenge Proposition H, may be obtained from the Rent Board in the following ways:

Web site: www.ci.sf.ca.us/rentboard/ under "What"s New"

24-Hour Recorded Information Line: 415.252.4600, Menu No. 46, "Proposition H—Current Status"

Fax Back: 415.252.4660, Document Number 014, "What"s New/Amended"

We will keep the information available from these resources current. Should you have questions that are not answered in these resources, you can also call our counseling staff at 415.252.4602 from 9-12 am and 1-4 pm, Monday through Friday.

 

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Annual Statistical Report for FY2000-2001 released (8/1/01)

Annual Statistical Report for FY2000-2001

(8/1/01)

The Rent Board"s Annual Statistical Report for fiscal year 2000-2001 has been released and can be viewed online.

 

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Proposition H Advisory #16 (7/20/01)

On July 18, 2001 the court heard continued argument on the City"s and the owners" respective Motions for Summary Judgment in Quigg vs. City and County of San Francisco, et al., Superior Court Case Number 316928. Judge Robertson stated his conclusion that the challenged provisions of Proposition H as implemented by the Rent Board"s proposed regulations are constitutionally defective and therefore cannot be enforced. Judge Robertson"s constitutional concerns include, among other things, possible problems with the retroactive application of Proposition H to certain classes of landlords. A Proposed Order will be considered by the Court at a hearing scheduled on August 8th at 3:30 p.m. A hearing on whether Proposition H also violates the vested rights of the individual plaintiff intervenors is scheduled on August 14th, at 3:30 p.m. The temporary moratorium ordinance preventing the Rent Board from processing capital improvement petitions will remain in effect until the Court issues its Order in this case.

Up-to-Date Information on Implementation of Proposition H

Information concerning the Rent Board"s development of forms, regulations and procedures, as well as the status of legal actions to challenge Proposition H, may be obtained from the Rent Board in the following ways:

Web site: www.ci.sf.ca.us/rentboard/ under "What"s New"

24-Hour Recorded Information Line: 415.252.4600, Menu No. 46, "Proposition H-Current Status"

Fax Back: 415.252.4660, Document Number 014, "What"s New/Amended"

We will keep the information available from these resources current. Should you have questions that are not answered in these resources, you can also call our counseling staff at 415.252.4602 from 9-12 am and 1-4 pm, Monday through Friday.

 

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June 19, 2001 Commission discussion of 6.15C Proposed Amendment - 6/19/01

June 19, 2001 Commission discussion of 6.15C Proposed Amendment

 

 

 

The Rent Board Commission will discuss an amendment to the Rules and Regulations of the Rent Ordinance, Section 6.15C on June 19, 2001 at it"s board meeting that evening. Please note that this is the initial discussion of this section and is NOT a public hearing. As is always the case, members of the public may make comments on the discussion during Public Comments section on the agenda. The text is as follows:

 

 

CURRENT ORDINANCE LANGUAGE RELATING TO THIS TOPIC

 

Sec. 37.3 Rent Limitations.

 

(c) Initial Rent Limitation for Subtenants. A tenant who subleases his or her rental unit may charge no more rent upon initial occupancy of the subtenant or subtenants than that rent which the tenant is currently paying to the landlord.

 

 

PROPOSED AMENDMENTS TO THE RULES AND REGULATIONS WOULD ADD THIS SECTION:

 

Add Section 6.15C(3) to Rules:

 

(3) Partial Sublets. In the event a master tenant does not sublease the entire rental unit, as anticipated in Section 37.3 (c), then the master tenant may charge the subtenant(s) no more than the subtenant(s) proportional share of the total current rent paid to the landlord by the master tenant for the housing and housing services to which the subtenant is entitled under the sub-lease.

 

(a) The allowable proportional share of total rent may be calculated based upon the square footage shared with and occupied exclusively by the subtenant; or an amount substantially proportional to the space occupied by and shared with the subtenant (e.g. three persons splitting the entire rent in thirds) or any other method that allocates the rent such that the subtenant pays no more to the master tenant than the master tenant pays to the landlord for the housing and housing services to which the subtenant is entitled under the sublease. In establishing the proper initial base rent, additional housing services provided by, or any special obligations of, the master tenant, or evidence of the relative amenities or value of rooms, may be considered by the parties or the Rent Board when deemed appropriate. Any methodology that shifts the rental burden such that the subtenant(s) pays substantially more than their square footage portion, or substantially more than the proportional share of the total rent paid to the landlord, shall be presumed to be in excess of the lawful limitation.

 

(b) The master tenant or subtenant(s) may petition the Board for an adjustment of the initial rent of the subtenant.

 

(c) If a portion of a capital improvement passthrough or a utility increase is allocated to a subtenant, it must be separately identified and not included in the subtenant"s base rent. Such amounts are subject to the rules herein and must be discontinued or recalculated pursuant to the applicable rules. Any amount that is improperly calculated or not properly discontinued shall be disallowed.

 

(d) In the event of any dispute regarding any allowable increase, or allocation, or any rental amount paid that is not rent, the subtenant may file a claim of unlawful rent increase to have the matter resolved, as if the master tenant were the owner of the building. Disallowed or improper increases, shall be null and void.

 

(e) For any sublease entered into on or before _____________ [effective date of new rule] where the sublease rent was not calculated as provided for herein, the master tenant shall have six months from the effective date of this regulation to notice an adjusted proper rent and refund any overpayments paid after the effective date of this section. No petitions alleging overpayments may be filed during this time.

 

(f) For any sublease entered into after ____________ [effective date of new rule] where the sublease rent was not calculated as provided for herein, the portion of the subtenant"s rent that is in excess of the amount allowed pursuant to this Section 6.15C(3) shall be null and void.

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