San Francisco Rent Board News Archive: 2015

December 31, 2015

  1. Annual Rent Increase for 3/1/16-2/28/17 Announced
  2. Rent Board Amends the Rules and Regulations re Eviction Protections and Additional Occupants
  3. Rent Board to Hold Public Hearing on Dec. 3, 2015 on Amendments to its Rules and Regulations re Eviction Protections and Additional Occupants
  4. New Eviction Notice Requirements as of November 9, 2015
  5. Rent Board Considers Amendments to its Rules and Regulations re Eviction Protections and Additional Occupants
  6. New Ordinance Amendments Re Eviction Protections And Allowance Of Additional Occupants
  7. California Superior Court Strikes Second Ordinance Amendment re Increased Relocation Payments to Tenants in Ellis Evictions - Update #2 (10/2/15)
  8. Increased Ellis Relocation Payments Ordinance – Update #1 (6/19/15)
  9. New Ordinance Amendment Re Increased Ellis Relocation Payments to Tenants (6/14/15)
  10. California Superior Court Strikes Ordinance Amendment re Increased Relocation Payments to Tenants in Ellis Evictions
  11. New Rules for Short-Term Rentals
  12. Return

Sections

  1. Annual Rent Increase for 3/1/16-2/28/17 Announced
  2. Rent Board Amends the Rules and Regulations re Eviction Protections and Additional Occupants
  3. Rent Board to Hold Public Hearing on Dec. 3, 2015 on Amendments to its Rules and Regulations re Eviction Protections and Additional Occupants
  4. New Eviction Notice Requirements as of November 9, 2015
  5. Rent Board Considers Amendments to its Rules and Regulations re Eviction Protections and Additional Occupants
  6. New Ordinance Amendments Re Eviction Protections And Allowance Of Additional Occupants
  7. California Superior Court Strikes Second Ordinance Amendment re Increased Relocation Payments to Tenants in Ellis Evictions - Update #2 (10/2/15)
  8. Increased Ellis Relocation Payments Ordinance – Update #1 (6/19/15)
  9. New Ordinance Amendment Re Increased Ellis Relocation Payments to Tenants (6/14/15)
  10. California Superior Court Strikes Ordinance Amendment re Increased Relocation Payments to Tenants in Ellis Evictions
  11. New Rules for Short-Term Rentals
  12. Return
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Annual Rent Increase for 3/1/16-2/28/17 Announced

Effective March 1, 2016 through February 28, 2017, the allowable annual increase amount is 1.6%. In accordance with Rules and Regulations Section 1.12, this amount is based on 60% of the percentage increase in the Consumer Price Index (CPI) for All Urban Consumers in the San Francisco-Oakland-San Jose region for the 12-month period ending October 31, which was 2.6% as posted in November 2015 by the Bureau of Labor Statistics.

To calculate the dollar amount of the 1.6% annual rent increase, multiply the tenant's base rent by .016.  For example, if the tenant's base rent is $1,500.00, the annual increase would be calculated as follows: $1,500 x .016 = $24.00.  The tenant's new base rent would be $1,524.00 ($1,500.00 + $24.00 = $1524.00).

 

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Rent Board Amends the Rules and Regulations re Eviction Protections and Additional Occupants

After a public hearing on December 3, 2015, the Rent Board Commission approved the proposed amendments to Rules and Regulations Sections 6.15A, 6.15B and 6.15D and added Section 6.15E, all to be effective as of December 4, 2015. 

 

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Rent Board to Hold Public Hearing on Dec. 3, 2015 on Amendments to its Rules and Regulations re Eviction Protections and Additional Occupants

At their regular meeting on Tuesday, November 10, 2015, the Rent Board Commissioners considered possible amendments to Rules and Regulations Section 6.15A, 6.15B, 6.15D and new proposed Regulation Section 6.15E. The amendments are in response to the passage of Ord. No. 171-15 (PDF) by the San Francisco Board of Supervisors which became effective on November 9, 2015.

At their November 10th meeting, the Commissioners further amended Rules and Regulations Sections 6.15A (PDF), 6.15B (PDF), 6.15D (PDF) and 6.15E (PDF). They also voted to hold a public hearing on the amended proposed regulations. The public hearing will be held on December 3, 2015 in room 70 at 25 Van Ness Avenue in San Francisco and begins at 6:00 pm.

Interested parties may attend the public hearing to comment on the proposed amendments to the regulations and/or submit written comments. Written comments should be received at the Rent Board’s office no later than noon on November 30, 2015, so that the Commissioners have adequate time to review them prior to the public hearing. Written comments (12 copies, please) may also be submitted at the hearing.

 

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New Eviction Notice Requirements as of November 9, 2015

Effective November 9, 2015, Rent Ordinance Section 37.9(c) was amended to require the landlord to attach to every eviction notice a copy of the new Rent Board Form 1007 (Notice to Tenant Required by Rent Ordinance §37.9(c)). The form is required to state that "a tenant's failure to timely act in response to a notice to vacate may result in a lawsuit by the landlord to evict the tenant" and that advice regarding the notice to vacate is available from the Rent Board. The single page form includes the "Notice to Tenant" in all 6 required languages: English, Spanish, Chinese, Vietnamese, Russian and Tagalog.

Also effective November 9, 2015, and pursuant to Ordinance Section 37.9(c) as amended, all notices to vacate under the following Rent Ordinance Sections must state in the notice to vacate the lawful rent for the unit at the time the notice to vacate is issued: 37.9(a)(8) (owner/relative move-in); 37.9(a)(9) (sale of condominium); 37.9(a)(10) (demolition/permanent removal of unit from housing use); 37.9(a)(11) (temporary eviction to perform capital improvements); and, 37.9(a)(14) (temporary eviction to perform lead remediation).

 

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Rent Board Considers Amendments to its Rules and Regulations re Eviction Protections and Additional Occupants

At their regular meeting on Tuesday, November 10, 2015, the Rent Board Commissioners will consider possible amendments to Rules and Regulations Section 6.15A (PDF), 6.15B (PDF) and 6.15D (PDF) and new proposed Regulation Section 6.15E (PDF). The amendments are in response to the passage of Ord. No. 171-15 (PDF) by the San Francisco Board of Supervisors which will become effective on November 9, 2015. The November 10, 2015 Rent Board meeting will be held in room 610 at 25 Van Ness Avenue in San Francisco and begins at 6:00 pm.

 

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New Ordinance Amendments Re Eviction Protections And Allowance Of Additional Occupants

The Board of Supervisors recently passed amendments to the Rent Ordinance that will take effect on November 9, 2015. A copy of the legislation is available here [Ord. No. 171-15]. In order to implement the new legislation, the Rent Board Commissioners are holding a special meeting of the Rent Board at 6:00 pm on Monday, October 26, 2015 to consider possible amendments to Rules and Regulations Sections 6.15A, 6.15B and 6.15D and new Regulation Section 6.15E. A public hearing on proposed changes to the Rules and Regulations is tentatively scheduled for Tuesday, November 10, 2015 at 6:30 pm.

 

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California Superior Court Strikes Second Ordinance Amendment re Increased Relocation Payments to Tenants in Ellis Evictions - Update #2 (10/2/15)

Effective July 14, 2015, the Board of Supervisors amended Rent Ordinance Sections 37.9A(e)(3)(E)-(H) to provide that as of June 1, 2014, each tenant displaced under the Ellis Act is entitled to the greater of (1) the existing rent relocation payment or (2) the difference between the tenant’s current rent and the market rental rate as determined by the Controller’s Office, multiplied to cover a two-year period.  A copy of Ordinance No. 68-15 amending Rent Ordinance Section 37.9A is provided here for your convenience.

In a state court challenge in Coyne v. CCSF, San Francisco Superior Court Case No. CPF-15-514382, Judge Quidachay ruled on October 2, 2015 that the new amendment to Section 37.9A "is preempted by the Ellis Act, and is invalid as-applied to the individual Petitioners and on its face, and it is unenforceable." The court enjoined the City from enforcing the new amendment. The Judgment Granting Petition for Writ of Mandate in Coyne v. CCSF is available here.

It is the City’s position that the City is also enjoined from enforcing Ordinance No. 68-15 by the injunction issued by the U.S. District Court in Levin v. CCSF (United States District Court Case No. 3:14-ev-03352-CRB), and the City has therefore never enforced Ordinance No. 68-15. The City has appealed the District Court’s order to the Ninth Circuit Court of Appeals.

The prior Ellis relocation benefits set forth in Rent Ordinance Section 37.9A remain in effect. 

 

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Increased Ellis Relocation Payments Ordinance – Update #1 (6/19/15)

As part of the amendment to Ordinance Section 37.9A, effective June 14, 2015, the Controller is required to establish a San Francisco Rental Payment Differential Report and provide it to the Rent Board for publication. The Controller’s Reports for 2014 and 2015 are here for informational purposes only. The amended Ordinance also authorizes the Rent Board to prepare and make available a Tenant Declaration form. The Declaration form is here for informational purposes only.

It is the City’s position that the amendment to Section 37.9A is covered by the previous injunction issued by the Court in Levin v. CCSF (United States District Court Case No. 3:14-ev-03352-CRB), and therefore the City is not enforcing the amended ordinance until permitted to do so by the Court. The City has appealed the District Court’s order to the Ninth Circuit Court of Appeals. The Rent Board will provide further updates on the status of the amended Ordinance as they are available.

 

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New Ordinance Amendment Re Increased Ellis Relocation Payments to Tenants (6/14/15)

Effective June 14, 2015, Rent Ordinance Sections 37.9A(e)(3)(E)-(H) were amended to provide that as of June 1, 2014 each tenant displaced under the Ellis Act is entitled to the greater of (1) the existing rent relocation payment or (2) the difference between the tenant’s current rent and the market rental rate as determined by the Controller’s Office based on data from RealFacts or other analysis of the SF rental market for the prior calendar year, multiplied to cover a two-year period, provided that the tenant submits a sworn declaration to the landlord that the tenant will use the relocation payment under subsection 37.9A(e)(3)(E)(i)b. solely for relocation costs and the tenant maintains proof of relocation expenditures for three years and provides such proof to the landlord upon written request. The amendment also allows a landlord to request a hearing to obtain a Rent Board determination of a revised relocation payment obligation based on (1) undue financial hardship or (2) the market rental rate for a comparable unit.

[NOTE: It is the City’s position that this amendment is covered by the previous injunction issued by the Court in Levin v. City & County of San Francisco (United States District Court Case No. 3:14-ev-03352-CRB), and therefore the City is not enforcing the amended ordinance until permitted to do so by the Court. The City has appealed the District Court’s order to the Ninth Circuit Court of Appeals.]

A copy of Ordinance No. 68-15 amending Rent Ordinance Section 37.9A is provided here for your convenience.

 

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California Superior Court Strikes Ordinance Amendment re Increased Relocation Payments to Tenants in Ellis Evictions

The Board of Supervisors amended the Rent Ordinance effective June 1, 2014 to require landlords to pay increased relocation payments to tenants evicted under the Ellis Act. On October 21, 2014 the U.S District Court found in Levin v. CCSF that the new amendment was unconstitutional on its face and enjoined the City from enforcing the new law. The prior Ellis relocation benefits set forth in Rent Ordinance Section 37.9A remain in effect during the City's appeal of the district court's ruling to the Ninth Circuit Court of Appeals.

In a separate state court challenge in Jacoby v. CCSF, San Francisco Superior Court Case No. CGC-14-540709, Judge Quidachay ruled on February 19, 2015 that the new amendment is also preempted by the Ellis Act because the amounts payable are unreasonable and not within the contemplation of the Legislature when it enacted and amended the Ellis Act. Since the amendment was previously enjoined by the federal court decision, the state court decision has no additional effect at this time.  

 

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New Rules for Short-Term Rentals

Effective February 1, 2015, Administrative Code Chapter 41A (known as the Residential Unit Conversion Ordinance) was amended to allow tenants and owners who are permanent residents to rent all or a portion of their unit for tourist or transient use under certain conditions. This short-term residential rental use is only allowed if the hosting tenant or owner complies with all the requirements of Chapter 41A. The Planning Department, not the Rent Board, enforces and administers the requirements of Chapter 41A, which can be found on the Planning Department's website at: http://www.sf-planning.org/index.aspx?page=4004 - q01

The new law does not override any provision in a tenant’s lease that prohibits use of the unit for short-term rental. Chapter 41A specifically “does not confer a right to lease, sublease, or otherwise offer a residential unit for short-term residential use where such use is not otherwise allowed by law, a homeowners association agreement or requirements, any applicable covenant, condition, and restriction, a rental agreement, or any other restriction, requirement, or enforceable agreement.” Thus, even if a tenant complies with the requirements of Chapter 41A and receives a valid Short-Term Residential Rental Registration from the Planning Department, the new law does not affect a landlord’s ability to evict a tenant under Rent Ordinance Section 37.9(a)(2) for violation of a lease covenant that restricts or prohibits short-term rentals.

If a landlord unilaterally imposes a new lease provision that prohibits short-term rentals after the inception of the tenancy, the landlord may not evict a tenant under Rent Ordinance Section 37.9(a)(2) for violating the new lease covenant unless the change in terms of tenancy was accepted in writing by the tenant after receipt of written notice from the landlord that the tenant need not accept such new term as part of the rental agreement. (See Rent Board Rules and Regulations Section 12.20.)

Even where there is no restriction on short-term rental use in the lease, the tenant must still comply with Chapter 41A in order to rent the unit for short-term residential use. However, Rent Ordinance Section 37.9(a)(4) was amended as of February 1, 2015 to provide that a first-time violation of Chapter 41A by a tenant is not considered an "illegal purpose" for which the tenant can be evicted if the tenant cured the violation within 30 days of written notice. 

For short-term rentals in rent-controlled units, the hosting tenant may not charge rental fees to guests that are more than the monthly rent the tenant is paying to the landlord. Pursuant to Chapter 41A.5(g)(1)(G), the hosting tenant must comply with the initial rent limitation for subtenants found in Rent Ordinance Section 37.3(c). Failure by a hosting tenant to comply with Section 37.3(c) for short-term rentals of less than 30 days is a violation of Chapter 41A, which is not enforceable at the Rent Board. For longer rentals, a subtenant can file a petition at the Rent Board for a refund of rent overpayments if the master tenant has violated the initial rent limitation set forth in Section 37.3(c).

 

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