- Superior Court Strikes Recent Amendments to the Tenant Buyout Ordinance
- New Ordinance Amendment Limiting Residential Evictions Through 3/31/21
- New Legislation Re Midtown Park Apartments
- Annual Rent Increase for 3/1/22-2/28/23 Announced
- MOHCD Publishes New Rules and Regulations re the Local Eviction Moratorium
- New Emergency Ordinance re Construction Work During COVID-19
- Rent Board Amends the Rules and Regulations re General Obligation Bond Passthroughs
- Tenants Displaced by Northern California Fires are Eligible for Good Samaritan Occupancy Status
- New Ordinance Amendments Providing Eviction Protections for Non-Payment of Rent During COVID-19
- New Ordinance Amendments re “Non-Tenant” Occupancy of Rental Units and Disclosure Requirements for Rental Advertisements
- Rent Board Amends the Rules and Regulations in Response to Recent Amendments to the Ordinance Extending Eviction Controls to New Construction and Sub Rehab Units
- Temporary Moratorium on Rent Increases for Rent-Controlled Tenancies During the COVID-19 Pandemic
- The Temporary Eviction Moratorium
- New Ordinance Amendments Regarding Tenant Buyout Agreements
- Public Outreach Events 2020
- Rent Board Amends the Rules & Regulations re Temporary Evictions for Capital Improvements
- New Amendment to Ellis Act
- New Ordinance Amendments Extending Eviction Controls to New Construction and Sub Rehab Units
- Return
Sections
- Superior Court Strikes Recent Amendments to the Tenant Buyout Ordinance
- New Ordinance Amendment Limiting Residential Evictions Through 3/31/21
- New Legislation Re Midtown Park Apartments
- Annual Rent Increase for 3/1/22-2/28/23 Announced
- MOHCD Publishes New Rules and Regulations re the Local Eviction Moratorium
- New Emergency Ordinance re Construction Work During COVID-19
- Rent Board Amends the Rules and Regulations re General Obligation Bond Passthroughs
- Tenants Displaced by Northern California Fires are Eligible for Good Samaritan Occupancy Status
- New Ordinance Amendments Providing Eviction Protections for Non-Payment of Rent During COVID-19
- New Ordinance Amendments re “Non-Tenant” Occupancy of Rental Units and Disclosure Requirements for Rental Advertisements
- Rent Board Amends the Rules and Regulations in Response to Recent Amendments to the Ordinance Extending Eviction Controls to New Construction and Sub Rehab Units
- Temporary Moratorium on Rent Increases for Rent-Controlled Tenancies During the COVID-19 Pandemic
- The Temporary Eviction Moratorium
- New Ordinance Amendments Regarding Tenant Buyout Agreements
- Public Outreach Events 2020
- Rent Board Amends the Rules & Regulations re Temporary Evictions for Capital Improvements
- New Amendment to Ellis Act
- New Ordinance Amendments Extending Eviction Controls to New Construction and Sub Rehab Units
- Return
Effective April 6, 2020, the Board of Supervisors amended Rent Ordinance Section 37.9E (the “Amended Buyout Ordinance”) to revise the requirements that landlords must follow when engaging in buyout negotiations with tenants. A copy of the legislation is available here [Ord No. 36-20].
In a state court challenge in San Francisco Apartment Association et al v. City and County of San Francisco et al, San Francisco Superior Court Case No. CPF-20-517087, Judge Haines initially ruled on October 8, 2020 that “ordinance 36-20 is invalid and unenforceable”, and enjoined the City from enforcing the entirety of the Amended Buyout Ordinance. However, the Superior Court’s judgment issued on December 11, 2020 supersedes the prior order and only enjoins sections (c) and (i) of the Amended Buyout Ordinance, which allows the remaining sections of the legislation to remain intact and enforceable. The Judgement Granting Petition for Writ of Mandate in San Francisco Apartment Association et al v. City and County of San Francisco et al is available here.
The City has not yet indicated if it will appeal the judgement.
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New Ordinance Amendment Limiting Residential Evictions Through 3/31/21
On November 30, 2020, Rent Ordinance Section 37.9 was amended pursuant to Ord. No. 216-20 to limit residential evictions through March 31, 2021, unless the eviction is based on the non-payment of rent, the Ellis Act, or is necessary due to violence-related issues or health and safety issues.
The Ordinance amendment adds Section 37.9(n), which is set forth below.
(n) Additional Just Cause Requirements Due to COVID-19.
(1) No landlord shall recover possession of a rental unit on or before March 31, 2021 unless necessary due to violence, threats of violence, or health and safety issues. This limitation shall be in addition to the just cause requirements set forth in Section 37.9(a), and shall apply to all rental units, including those that are otherwise exempt from just cause pursuant to Section 37.9(b). However, this additional limitation shall not apply to evictions due to unpaid rent or any other unpaid financial obligation of a tenant under the tenancy that came due between March 1, 2020 and January 31, 2021, inclusive; or to evictions under Section 37.9(a)(13).
(2) The protections in subsection (1) shall also apply to units where the rent is controlled or regulated by the City, notwithstanding Section 37.2(r)(4), including without limitation privately-operated units controlled or regulated by the Mayor’s Office of Housing and Community Development and/or the Department of Homelessness and Supportive Housing.
(3) This Section 37.9(n) is intended to limit evictions until March 31, 2021, and shall therefore apply to all residential dwelling units described in subsections (1) and (2), including but not limited to those where a notice to vacate or quit was pending as of the date that this Section 37.9(n) took effect and regardless whether the notice was served before or after September 15, 2020.
(4) This Section 37.9(n) shall expire by operation of law on April 1, 2021, unless extended by ordinance. Upon expiration, the City Attorney shall cause this Section 37.9(n) to be removed from the Administrative Code.
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New Legislation Re Midtown Park Apartments
Ordinance No. 213-20, which was recently passed by the Board of Supervisors and signed by the mayor, became effective on November 30, 2020. The Ordinance amends the Administrative Code to adopt rent increase limitations for dwelling units at Midtown Park Apartments, a residential development owned by the City and County of San Francisco, and expands the Rent Board fee to cover those dwelling units. Specifically, the Ordinance amends Sections 37.2 and 37.6 of the Rent Ordinance, Chapter 37A of the San Francisco Administrative Code, and adds Chapter 37B to the San Francisco Administrative Code.
Midtown Park Apartments is a residential building located at 1415 Scott Street that is owned by the City and is exempt from the City’s Rent Ordinance. Instead, rents for tenants at Midtown are set by the Mayor’s Office of Housing and Community Development (“MOHCD”), based on a percentage of each tenant’s household income and other factors. Pursuant to this ordinance, MOHCD retains the ability to set rents at Midtown, but only if no “Legacy Tenant” resides in the unit. A Legacy Tenant is a tenant who has resided in the unit since January 1, 2014. Legacy Tenants instead have their rents regulated as though the rent increase limitations of the Rent Ordinance applies. Each Legacy Tenant also has a one-time option to switch over to having their rent set under whatever MOHCD rent program may exist at that time. However, once a Legacy Tenant switches over to the MOHCD rent program, that would apply going forward, and the Legacy Tenant cannot later revert to the Rent Ordinance.
The ordinance allows rent disputes for Midtown units (regardless of whether occupied by a Legacy Tenant) to be appealed to the Rent Board by filing a petition for arbitration, and expands payment of the Rent Board fee to Midtown units in order for the City to recoup the associated costs.
The ordinance also directs MOHCD to determine the base rents and applicable rent increases for the existing tenants at Midtown (Legacy and non-Legacy Tenants), and to credit any excess amounts that any tenant may have paid between May 1, 2014 and the date the ordinance takes effect, by no later than February 1, 2021.
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Annual Rent Increase for 3/1/22-2/28/23 Announced
Effective March 1, 2022 through February 28, 2023, the allowable annual increase amount is 2.3%. 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 3.8% as posted in November 2021 by the Bureau of Labor Statistics.
To calculate the dollar amount of the 2.3% annual rent increase, multiply the tenant's base rent by .023. For example, if the tenant's base rent is $1,500.00, the annual increase would be calculated as follows: $1,500.00 x .023 = $34.50. The tenant's new base rent would be $1,534.50 ($1,500.00 + $34.50 = $1,534.50).
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MOHCD Publishes New Rules and Regulations re the Local Eviction Moratorium
On September 28, 2020, the San Francisco Mayor’s Office of Housing and Community Development (MOHCD) published updated “Rules and Regulations for Tenants and Landlords” that implements Mayor London Breed’s August 25, 2020, Eviction Moratorium Order. Note that pursuant to MOHCD’s most recent update, Rent Board Form 1010 is no longer required to be attached to all eviction notices.
The MOHCD has also created a detailed document titled: “Summary of Protections for Residential Tenants in San Francisco”, that integrates and summarizes local, state, and federal eviction protections that have been enacted due to COVID-19.
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New Emergency Ordinance re Construction Work During COVID-19
On August 28, 2020, the Mayor of San Francisco signed an emergency Ordinance passed by the Board of Supervisors that prohibits construction work in a residential building, whether or not a building permit has already been issued, if the construction work would result in the suspension of water service or any other utility service to any resident of the building unless:
(i) in the event of a water shutoff exceeding two hours in a single day, the property owner provides an alternative water source to each impacted resident, including but not limited to water bottles or gallons of water;
(ii) in the event of an electricity shutoff exceeding two hours in a single day, the property owner provides a generator or alternative power source that allows internet use to each impacted resident;
Additionally, if it is expected that the construction work will require the use of loud instruments for a continuous or long period of time, the property owner must install temporary insulation to mitigate the resulting noise and disruption to impacted residential tenants.
Notwithstanding the above, the Department of Building Inspection may authorize construction to continue if a pause would create an imminent safety hazard.
New Notice Requirements:
The Ordinance also requires the landlord to give each tenant that will be impacted by water and/or utility service interruption the name and contact information of a liaison who can provide information and respond to tenant concerns, as well as advance notice to each impacted resident as follows:
(a) in the event of an anticipated water or electricity shutoff lasting more than two consecutive hours or four non-consecutive hours in a single day, all impacted residents must be provided with 72 hours advance written notice;
(b) in the event of an anticipated water or electricity shutoff of more than two consecutive hours or four non-consecutive hours on two or more consecutive days, or on more than three days in a single week, all impacted residents must be provided with written notice at least one week in advance of the first shutoff, and with weekly updates for prolonged construction projects.
Effective Dates:
The Ordinance is effective for 60-days (until 10/27/20), unless extended, and is intended to be retroactive to July 14, 2020 (although the Ordinance also states that DBI should exercise “administrative discretion” when enforcing the Ordinance for violations that occured prior to enactment on August 28, 2020).
Exemptions:
Landlords are exempt from the obligations of this emergency Ordinance if (a) the landlord and all impacted residential tenants agree to different terms, or (b) if the building contains 100% affordable housing units (not rent-controlled units).
Enforcement:
The Department of Building Inspection is empowered to enforce the requirements of this emergency ordinance. Upon finding a first violation, DBI will issue a warning to the property owner along with a copy of the requirements of this emergency ordinance. For any subsequent violations, DBI may issue a Notice of Violation and/or any other applicable citation pursuant to the Building Code.
A copy of the legislation can be found here.
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Rent Board Amends the Rules and Regulations re General Obligation Bond Passthroughs
After a public hearing on August 11, 2020, the Rent Board Commissioners approved proposed amendments to Rules and Regulations Section 10.15 regarding General Obligation Bond Passthroughs.
The amendment to Rules and Regulations Section 10.15 was in response to a recent amendment to Rent Ordinance Section 37.3(a)(6)(E) by the Board of Supervisors, which allows tenants to seek relief from payment of some general obligation bond passthrough amounts by filing a Tenant Financial Hardship Application. Specifically, hardship relief is only available for that portion of a general obligation bond passthrough that is attributable to general obligation bonds approved by the voters on or after November 5, 2019. The existing rule that no hardship relief is available for general obligation bond passthroughs continues to apply for all other passthrough amounts.
The amendment to Rules and Regulations Section 10.15 merely conforms the Tenant Financial Hardship Application provisions in the Rules and Regulations to the recent Ordinance amendments.
The full text of the amended Rules and Regulations Section 10.15 is available here.
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Tenants Displaced by Northern California Fires are Eligible for Good Samaritan Occupancy Status
Tenants displaced by the recent fires in Northern California can enter into a Good Samaritan occupancy agreement with a landlord in San Francisco, provided that: (1) the tenant has received a written Certification of Emergency Situation Requiring Displacement of Tenant pursuant to Ordinance §37.2(a)(1)(D)(iii); (2) the San Francisco unit is subject to the Rent Ordinance; (3) the tenant and the Good Samaritan landlord comply with all of the requirements of the Good Samaritan program as set forth in Ordinance §37.2(a)(1)(D); and, (4) there are no constraints on the amount of rent or re-rental rights because of a prior eviction that might affect the landlord's ability to enter a Good Samaritan agreement for a particular rental unit.
The tenant's initial rent under the Good Samaritan occupancy agreement must be limited to no more than the rent the tenant was paying prior to the displacement, plus 10%. Tenants from outside San Francisco do not gain the right to return to the damaged unit simply by having a temporary Good Samaritan occupancy agreement in San Francisco. Property owners who were displaced by recent Northern California fires are not eligible for Good Samaritan occupancy agreements in San Francisco.
Tenants should contact Ben Amyes at the Human Services Agency to connect with potential Good Samaritan landlords. His phone number is 415.557.5370. Ben is authorized to sign the Certification form that's required prior to entering into a Good Samaritan occupancy agreement, even if the tenant was displaced from a rental unit outside San Francisco. Any San Francisco landlord who wishes to offer a unit to a displaced tenant through the Good Samaritan program should also contact Ben Amyes.
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New Ordinance Amendments Providing Eviction Protections for Non-Payment of Rent During COVID-19
Background: The Mayor’s Temporary Eviction Moratorium
On March 13, 2020 and thereafter, the Mayor of San Francisco issued Executive Orders that created new eviction protections for residential tenants who are unable to pay rent due to COVID-19 (known as “the Temporary Eviction Moratorium”).
The new eviction protections include a rent payment extension, which provide that no tenant can be evicted for a missed rent payment that became due during the Temporary Eviction Moratorium until six months after the Mayor's Order expires (currently February 28, 2021), provided both (a) and (b) apply:
- The missed rent payment became due after March 13, 2020, but before the expiration of the temporary Eviction Moratorium (currently August 31, 2020, but may be extended).
- The tenant was unable to pay rent because of documented financial impacts related to COVID-19.
New Rent Ordinance Amendments
On July 13, 2020, Rent Ordinance Section 37.9 was amended pursuant to Ord. No. 89-20 to prohibit landlords of residential hotel units (SROs) from evicting tenants for non-payment of rent that was unpaid due to the COVID-19 pandemic, and from imposing late fees, penalties, or similar charges for the missed rent payments. Unlike the Mayor’s Temporary Eviction Moratorium, which only prohibits such evictions through January 31, 2021 (unless extended), this legislation permanently bans certain non-payment of rent evictions (as described further below), even if the rent is not paid after the Temporary Eviction Moratorium period expires.
Note that Ord. No 89-20 only provides eviction protections to tenants residing in SRO units, and was superseded and became inoperative on July 27, 2020, due to the enactment of broader legislation described below.
Effective July 27, 2020, Rent Ordinance Section 37.9 was further amended pursuant to Ord. No. 93-20 to prohibit landlords of all units covered by the Rent Ordinance (both SRO units and non-SRO units) from evicting tenants for non-payment of rent that was unpaid due to the COVID-19 pandemic, and from imposing late fees, penalties, or similar charges for such missed rent payments. The amendments provide that no tenant may be evicted for non-payment of rent that became due while the Governor’s Executive Order on evictions is in effect (currently March 16, 2020 through September 30, 2020, unless extended), even if the rent is not paid after the Mayor’s Temporary Eviction Moratorium period expires. In other words, it creates a permanent eviction moratorium for missed rent payments that became due during the Governor’s Executive Order on evictions. The legislation only limits evictions and does not waive the tenant’s obligation to pay the rent. Thus, a landlord may still bring a civil action in court to collect the unpaid rent.
In order for the permanent eviction protections to apply, the tenant’s inability to pay rent must (a) arise out of a substantial decrease in household income (for example, a loss of income caused by layoffs, a reduction in work hours, or substantial out-of-pocket expenses), and (b) be caused by the COVID-19 pandemic, or by any local, state, or federal government response to COVID-19.
In addition, the tenant must keep documentation showing their inability to pay rent was caused by COVID-19. Such documentation may include, but is not limited to, bank statements, pay stubs, employment termination notices, proof of unemployment insurance claim filings, sworn affidavits, or a letter from their employer.
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New Ordinance Amendments re “Non-Tenant” Occupancy of Rental Units and Disclosure Requirements for Rental Advertisements
The Board of Supervisors recently passed legislation enacting Rent Ordinance Section 37.9F, which takes effect on June 22, 2020. A full copy of the legislation (which also amended the San Francisco Planning Code) is available here [Ord No. 78-20]. A summary of newly enacted Rent Ordinance Section 37.9F, titled “Circumvention of Tenant Protections”, is provided below.
- Ordinance Section 37.9F(b) restates existing law that any agreement that requires a tenant to vacate a rental unit at the expiration of a fixed term is void as contrary to public policy, unless an existing just-cause exception applies (for example, where the landlord resides in the same rental unit as the tenant).
- Ordinance Section 37.9F(c) regulates “non-tenant uses” by limiting when landlords can allow their units to be occupied by persons or entities who are not tenants. Renting a rental unit to a corporate entity or other non-natural person for any purpose, or using a rental unit as housing for one’s employees or “licensees,” are examples of prohibited “non-tenant uses”. Commencing April 1, 2020, it is unlawful to use a rental unit for a non-tenant use, and any such “non-tenants” are instead deemed “tenants” for the purpose of the eviction protections in the Rent Ordinance. However, the prohibition on non-tenant uses does not apply in the following circumstances:
- if the landlord entered into a contract before April 1, 2020 that specifically authorized the non-tenant use;
- if the rental unit is being used as a lawful short-term rental under Administrative Code Chapter 41A;
- if the landlord is using the unit to house an employee in charge or maintaining or managing the building (i.e. a resident manager); or
- if the rental unit is operated by a non-profit that provides housing as part of their primary mission or to teachers as a condition of their employment.
- Ordinance Section 37.9F(d) requires landlords to include a written disclosure in all online listings for residential rental units, excluding listings by landlords or master tenants who will reside in the same rental unit as their tenants or subtenants. The disclosure, which is also required in print advertising (if practicable) must be in 12-point font or larger and state the following:
“This unit is a rental unit subject to the San Francisco Rent Ordinance, which limits evictions without just cause, and which states that any waiver by a tenant of their rights under the Rent Ordinance is void as contrary to public policy.”
- Ordinance Section 37.9F(e) states that the Rent Board may receive referrals regarding online listings that do not contain the above disclosure. If the Rent Board determines that the listing does not substantially comply with the legal requirements and the landlord has not corrected the defect, the Rent Board will attempt to inform the landlord in writing. The landlord must correct the violation within three business days after receiving the notice. If the landlord does not correct the violation within three business days, the Rent Board may impose a reasonable administrative penalty on the landlord of up to $100.00 per day, not counting the three-day correction period, and not to exceed $1,000.00 per listing.
Ordinance Section 37.9F(e) also authorizes the City Attorney or a non-profit tenants’ rights organization to sue for civil penalties.
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Rent Board Amends the Rules and Regulations in Response to Recent Amendments to the Ordinance Extending Eviction Controls to New Construction and Sub Rehab Units
After a public hearing on June 16, 2020, the Rent Board Commissioners unanimously approved proposed amendments to Rules and Regulations sections 1.17 and 1.18. The amendments are intended to conform the Rent Board’s Rules and Regulations to the recent Ordinance amendments (aka “the Haney amendments”) that extended eviction controls to units built after June 13, 1979, and properties that have undergone a substantial rehabilitation. The amendments to Rules and Regulations sections 1.17 and 1.18 are summarized below:
Previously, units constructed after June 13, 1979 (including live/work units) and properties that had undergone a substantial rehabilitation were entirely exempt from the Rent Ordinance (both the rent increase limitations and eviction controls). While the Haney amendments extended eviction controls to these units, Rent Board Rule 1.17(e-g) still described these units as wholly exempt from the Ordinance. Accordingly, the Rent Board Commissioners amended Rent Board Rule 1.17 to delete sections (e-g), and to reletter sections (h-i).
The Haney amendments added Rent Ordinance Section 37.3(g), which states that newly constructed rental units built after June 13, 1979 and properties that have undergone a substantial rehabilitation are not subject to the rent increase limitations of the Ordinance (although they are covered by the Rent Ordinance for all other purposes). The Board’s amendments to Rent Board Rule 1.18 added section “(a)”, which further interprets the term “new construction” in Rent Ordinance Section 37.3(g). While the definition of “new construction” was mostly unchanged by the Board’s amendments (the same description was previously located in deleted Rent Board Rule 1.17(e-f), the Rent Board Commission did clarify in the amendments that the definition of “new construction” does not include units where there was residential use of the unit prior to the issuance of the Certificate of Occupancy.
The full text of the Rent Board’s Rules and Regulations can be found here.
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Temporary Moratorium on Rent Increases for Rent-Controlled Tenancies During the COVID-19 Pandemic
Information for Tenants and Landlords
Updated November 3, 2020
UPDATE: The rent freeze expired on October 21, 2020, and has not been extended or renewed as of the date of this publication. This webpage will be updated if any changes occur. |
Background
On April 24, 2020, the Mayor signed emergency legislation passed by the Board of Supervisors that temporarily prohibited certain rent increases during the COVID-19 pandemic (hereinafter referred to as “the temporary rent freeze”). On July 7, 2020 and August 25 2020, the temporary rent freeze was extended by the Board of Supervisors through October 21, 2020.
Effective Period
The temporary rent freeze applied to all rent increases and passthroughs that were effective between April 7, 2020 and October 21, 2020 (unless extended), even if the rent increase notice itself was served before April 7, 2020. However, rent increases or passthroughs that went into effect prior to April 7, 2020, or after October 21, 2020, are not affected.
What Types Of Increases Does The Temporary Rent Freeze Prohibit?
The temporary rent freeze only applied to annual allowable (and banked) rent increases, operating and maintenance expense rent increases, and “passthroughs” for rent-controlled tenancies under the San Francisco Rent Ordinance (i.e. - increases permitted by Rent Ordinance Section 37.3(a)).
The temporary rent freeze did not restrict the following types of rent increases:
- Rent increases for properties that are exempt from San Francisco’s local rent control regulations (See the Rent Board’s Info-To-Go topics or call our counselor line for more information).
- Rent increases that are permitted by state law, such as an increase based on the Costa-Hawkins Rental Housing Act or the Tenant Protection Act of 2019.
- Rent increases authorized by Rent Board Rules and Regulations Section 1.21, where the Rent Board has determined that there is no “tenant in occupancy” of the rental unit.
How Does The Temporary Rent Freeze Work?
The temporary rent freeze prohibited any rent increase that would otherwise be permitted by Rent Ordinance Section 37.3(a) from taking effect during the temporary rent freeze.
A landlord could still serve a notice of rent increase to be effective during the temporary rent freeze, but only to establish or preserve a tenant’s “anniversary date” for the purpose of future rent increases (see the examples below). In addition, the temporary rent freeze did not prevent a landlord from petitioning the Rent Board for certification of a rent increase or passthrough that requires Rent Board approval. However, if the landlord did serve a notice of rent increase that was effective during the temporary rent freeze, the tenant need not pay the increase until the landlord serves a new rent increase notice pursuant to Civil Code Section 827 that is effective after October 21, 2020.
For Example:
- The tenant’s base rent on May 1, 2019 is $1,000.00.
- On March 20, 2020, the landlord served a notice of rent increase to be effective on May 1, 2020 (during the rent freeze), which increased the tenant’s rent by 1.8% from $1,000.00 to $1,018.00. The rent increase notice also included a 12-month bond passthrough of $10.00 for tax year 2019-2020. Since the rent freeze deferred the rent increase (including the bond passthrough), the tenant continued to pay $1,000.00.
In order to begin collecting the deferred rent increase, the landlord must serve a new notice “reinstating” the deferred rent increase pursuant to California Civil Code Section 827 (CC 827), to be effective after October 21, 2020. CC 827 requires service of a thirty-day written notice of rent increase if the increase is 10% or less. A ninety-day written notice is required if the increase, either by itself or combined with any other rent increase in the 12 months prior to the effective date of the increase, is more than 10%. An additional five days must be added to the notice period if the notice is mailed.
Tip for landlords: When preparing a notice to reinstate a rent increase that was deferred by the temporary rent freeze, make sure you clearly explain that the notice is intended to reinstate the prior rent increase that was deferred by the temporary rent freeze, and that the tenant’s anniversary date for the purpose of future rent increases is the effective date of the first rent increase notice.
Continuing The Example From Above:
- On October 15, 2020, the landlord served a rent increase notice pursuant to CC 827, to be effective on December 1, 2020, which “reinstates” the May 1, 2020 rent increase. Beginning on December 1, 2020, the tenant must begin paying the new rent of $1,028.00 (base rent of $1,018.00 + $10.00 bond passthrough). The bond passthrough will be paid over a period of 12 months, beginning on the month it was reinstated (in this case, December 2020 through November 2021). However, the tenant's “anniversary date” is May 1, 2020, the effective date of the original notice, and the landlord may increase the tenant's base rent again 12 months later, on May 1, 2021. In addition, the landlord may impose a new bond passthrough for tax year 2020-2021 effective May 1, 2021, even though the tenant will still be paying the deferred bond passthrough from the prior year at that time. The tenant is not responsible for any retroactive rent increase payments for the period prior to when the deferred rent increase was reinstated on December 1, 2020.
- In the alternative, the landlord may wait until the tenant’s next anniversary date (May 1, 2021) to simultaneously reinstate the deferred rent increase from May 1, 2020, AND impose the new annual allowable rent increase effective May 1, 2021. The increase for May 1, 2021 would be calculated on the increased base rent of $1,018.00 that was reinstated pursuant to the notice. The landlord’s rent increase notice should clearly explain that the notice is intended to BOTH reinstate the prior rent increase that was deferred by the temporary rent freeze, and to impose the new annual increase on top of the reinstated base rent.
Landlord Passthroughs
The following types of rent increase passthroughs were also deferred and could not go into effect during the temporary rent freeze:
- Capital Improvement Passthroughs
- General Obligation Bond Passthroughs
- Water Revenue Bond Passthroughs
- Utility Passthroughs
If the landlord did serve a notice of rent increase for a passthrough amount that was effective during the temporary rent freeze, the increase is deferred and the landlord must follow the same steps described above to "reinstate" the deferred passthrough. Whenever reinstated, the passthrough will apply for the same number of months as stated in the original notice.
What If A Rent Increase Was Paid During The Temporary Rent Freeze?
If you are a landlord and you collected increased rent from a tenant that should have been deferred by the temporary rent freeze, immediately refund the tenant for the amount of the overpayment.
If you are a tenant and paid a rent increase that should have been deferred by the temporary rent freeze, notify your landlord (consider directing them to this webpage) and request that the overpayment be refunded.
What If A Dispute Arises Regarding The Tenant’s Rent Amount?
If the landlord does serve a notice of rent increase for a passthrough amount that is effective during the temporary rent freeze, the increase is deferred and the landlord must follow the same steps described above to "reinstate" the deferred passthrough. Whenever reinstated, the passthrough will apply for the same number of months as stated in the original notice.
What If A Rent Increase Was Paid During The Temporary Rent Freeze?
If a dispute cannot be resolved informally, either the landlord or the tenant may file a petition with the Rent Board requesting a determination of the tenant’s lawful rent amount.
Questions/More Information
For more information, visit our website (www.sfrb.org) and check back regularly for updates. You may also speak to a Rent Board counselor by phone at (415) 252-4600 during regular hours: Monday through Friday, 9:00 a.m. to 12:00 p.m., and 1:00 p.m. to 4:00 p.m.
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The Temporary Eviction Moratorium
Updated: 4/1/22
In addition to the existing “just-cause” requirements of the San Francisco Rent Ordinance, residential tenants in San Francisco have new protections against eviction during COVID-19 originating from state and local law.
The State of California Enacts Statewide Eviction Protections for Non-Payment of Rent.
Beginning in August of 2020, the State of California enacted statewide eviction protections for tenants unable to pay rent due to COVID-19. These laws provide that no tenant can be evicted as a result of rent owed due to a COVID-19 related hardship that became due between March 4, 2020 and August 31, 2020 if, upon request from the landlord, the tenant provides a declaration of hardship according to the legislation’s timelines.
For unpaid rent due to a COVID-19 related hardship that became due between September 1, 2020 and September 30, 2021, tenants who receive a notice from their landlord must also pay at least 25 percent of the rent due for those 13 months before September 30, 2021 to avoid eviction. The 25% rent amount can be paid in monthly increments, or in one lump-sum.
Although state law protects tenants from eviction if they meet the requirements, the unpaid rent is not forgiven or cancelled, and the landlord may take the tenant to small claims court starting on November 1, 2021 for any rent that is still unpaid. However, a small claims action IS NOT an eviction action. In order to evict a tenant before July 1, 2022 due to non-payment of rent, the landlord must prove that no applications for rental assistance remain pending that were filed (by the landlord or tenant) prior to April 1, 2022.
Rental assistance may be available for eligible tenants. For more information about how to apply for Emergency Rental Assistance, please Click Here.
Local Eviction Protections Enacted by the City of San Francisco for Evictions Other Than Non-Payment of Rent (now expired).
For evictions other than non-payment of rent, the San Francisco Board of Supervisors passed Ord. No. 216-20, which was extended several times, that prohibited the eviction of residential tenants before December 31, 2021, unless the eviction was based on the non-payment of rent (in which case the statewide eviction protections described above applied), the Ellis Act, or is necessary due to violence or health and safety-related issues.
How To Get More Help
For more information, please visit the website of the San Francisco Mayor’s Office of Housing and Community Development (MOHCD) or speak to a Rent Board Counselor by phone at 415-252-4600. Note that the Rent Board does not provide legal advice, and the information contained herein will not address all of the questions that may arise in response to these recent changes in eviction procedures. These laws are complicated, and this information may be updated in the future. If you receive an eviction notice or have any concerns about what you need to do to serve or respond to an eviction notice during the COVID-19 pandemic, we strongly recommend that you contact an attorney or advocacy organization for assistance.
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New Ordinance Amendments Regarding Tenant Buyout Agreements
The Board of Supervisors recently passed amendments to Rent Ordinance Section 37.9E (the “Buyout Ordinance”) that take effect on April 6, 2020. A copy of the legislation is available here [Ord No. 36-20]. A summary of the amendments is provided below.
- The term “Buyout Agreement” was broadened to include agreements to settle unlawful detainer actions, but only if the unlawful detainer action was filed within 120 days after buyout negotiations started.
- The legislation required the Rent Board to revise the Pre-Buyout Disclosure Form to include information regarding the impact of a Buyout Agreement on a tenant’s eligibility for the City’s affordable housing programs.
- The legislation required the Rent Board to revise the Landlord Declaration Regarding Buyout Disclosure Form for the landlord to indicate the date the Pre-Buyout Disclosure Form was served on the tenant(s), the method of service used (e.g., hand delivery, email, regular mail), and the Assessor’s parcel number (lot and block) of the building where the unit is located.
- After starting buyout negotiations, the landlord and tenant must now wait at least 30 days before executing the final Buyout Agreement.
- Additional statements must now be included in the Buyout Agreement, including a disclosure regarding the tenant’s right to cancel the agreement and the address of the unit and the assessor’s parcel number (lot and block) of the building where the unit is located.
- If the landlord does not file a copy of the Buyout Agreement with the Rent Board within 59 days after the agreement is executed, the tenant may now file a copy of the Agreement and any provision of the Agreement in which the tenant waived their rights or released claims is then voidable at the option of the tenant (but the tenant’s remedies would not include displacement of a subsequent tenant in the unit).
- The party who files the Buyout Agreement must now inform the Rent Board if the Buyout Agreement concerns an unlawful detainer action. If so, the Rent Board must redact from the posted Buyout Agreement any information concerning the unlawful detainer action that may be confidential under California Code of Civil Procedure 1161.2.
For more information regarding tenant buyout agreements, please refer to Rent Ordinance Section 37.9E or view the Rent Board’s Topic 263: Buyout Argreements.
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Public Outreach Events 2020
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Rent Board Amends the Rules & Regulations re Temporary Evictions for Capital Improvements
After a public hearing on January 28, 2020, the Rent Board Commissioners unanimously approved proposed amendments to Rules and Regulations sections 12.15, 12.16, and 12.17 regarding temporary evictions for capital improvement work.
The amendments to the Rules and Regulations were in response to the passage of recent amendments to Rent Ordinance Section 37.9(a)(11) [Ord. No. 245-19] by the Board of Supervisors, which clarified and made changes to the requirements for a capital improvement eviction and also modified the factors that the Rent Board must consider when reviewing a landlord’s Petition for Extension of Time to complete capital improvement work.
As summarized below, the changes to Rules and Regulations Sections 12.15, 12.16 and 12.17 are intended to help implement the new Ordinance amendments and clarify the procedures that must be followed when a tenant is temporarily evicted for capital improvement work.
- Section 12.15(b) was amended to list the information and documentation that must be provided by the landlord with the capital improvement eviction notice, in conformance with Ordinance Sections 37.9(a)(11), 37.9(c), 37.9(j), and 37.9C.
- Section 12.15(c) was amended to clarify that the amount of relocation payments that must be paid for temporary evictions of less than 20 days is governed by Civil Code Section 1947.9 and not Ordinance Section 37.9C.
- Section 12.15(e)(1)(C) was amended to state that the landlord’s Petition for Extension of Time to complete capital improvement work must state whether or not any of the work is elective in nature, which is a factor that the ALJ must now consider when reviewing the landlord’s Extension of Time petition pursuant to amended Ordinance Section 37.9(a)(11)(C).
- Section 12.16(a) was amended to describe the procedures that a landlord must follow in order to notify the tenant that the unit is ready for reoccupancy once the work is completed.
- Section 12.16(c) was added to state that a landlord's failure to timely allow the tenant to reoccupy the unit may create a rebuttable presumption that the tenancy has been terminated by the landlord rather than by the tenant, in conformance with amended Ordinance Section 37.9(a)(11)(C)(iii).
- Section 12.17 was amended to allow Rent Board staff to request that the notice to vacate for capital improvement work include a blank change of address form for the tenant, as required by amended Ordinance Section 37.9(a)(11)(A).
The full text of amended Rules and Regulations Sections 12.15, 12.16, and 12.17 is available for download or at our office.
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New Amendment to Ellis Act
The Ellis Act, found in California Government Code Section 7060, et seq., gives rental property owners the right to exit the rental housing business, but also allows local governments to place conditions and restrictions on landlords who evict tenants in order to exit the market. San Francisco has enacted procedures in Rent Ordinance Section 37.9A that owners must follow if they are going to evict tenants to exit the rental housing business. Pursuant to Assembly Bill 1399, the Ellis Act was amended effective January 1, 2020, to clarify the following:
(a) Government Code Section 7060.2(c) and Rent Ordinance Section 37.9A(c)(2) require a landlord to give a displaced tenant the first right of refusal to re-rent a unit returned to the market within ten years of the date of withdrawal, or face punitive damages equal to six months of the contract rent. AB 1399 amends Government Code Section 7060.2(c) to clarify that paying damages does not extinguish the owner’s obligation to comply with the law upon re-rental.
(b) Rent Ordinance Section 37.9A(f)(4) requires a 120-day notice period before a unit is "withdrawn" from the market under the Ellis Act. However, certain senior and disabled tenants are entitled to an extension to one-year, which defers the withdrawal date for that unit. Pursuant to AB 1399, Government Code Section 7060.4(b)(6) was amended to clarify that the “date of withdrawal” for the entire property as a whole is the latest termination date of any unit.
(c) AB 1399 amends Government Code Section 7060.7(d) to specify that the Ellis Act is not intended to allow an owner to return less than all the units to the rental market. In other words, it clarifies that local governments may require that if any unit is returned to the rental market during the period of constraints, the entire property must be returned to the market, with exceptions for certain owner-occupied units.
A redlined version of the Ellis Act, with changes effective January 1, 2020, can be found here: https://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=201920200AB1399&showamends=true
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New Ordinance Amendments Extending Eviction Controls to New Construction and Sub Rehab Units
Effective January 20, 2020, the Rent Ordinance was amended pursuant to Ord. No. 296-19 to extend eviction controls to (a) units that were newly constructed after June 13, 1979 (including live-work units), and (b) units that have undergone substantial rehabilitation.
Previously, these units were entirely exempt from the Rent Ordinance, including both the eviction controls and the rent regulations, as well as payment of the Rent Board fee. Under the new legislation, these units remain exempt from rent regulations, but are now covered by the Rent Ordinance for all other purposes. Accordingly, for buildings constructed after June 13, 1979 or where a substantial rehabilitation petition was previously approved, the landlord must comply with the notice and procedural requirements of the Rent Ordinance and Rules and Regulations in order to evict a tenant, including the requirement that a landlord have one of the allowable "just cause" reasons to terminate the tenancy. For eviction purposes, the rules that apply to these newly covered units are now identical to those for pre-1979 units, i.e., the landlord must pay relocation costs for certain types of "no-fault" evictions, a copy of Rent Board Form 1007 must be attached to the eviction notice, and where the landlord is temporarily evicting the tenant to perform capital improvement or rehabilitation work, the landlord must file a Petition for Extension of Time to Complete Capital Improvements if the landlord knows or should know that the work will require the removal of the tenant for more than three months. In addition, the buyout procedures contained in Ordinance Section 37.9E are now applicable to these units. Tenants in newly covered units may file a Report of Alleged Wrongful Eviction with the Rent Board if they believe an eviction or attempted eviction is in violation of the Rent Ordinance. However, the Rent Board cannot accept a landlord or tenant petition requesting an upward or downward adjustment of rent for these units since they remain exempt from the rent regulations of the Rent Ordinance.
Since newly constructed units and units that have undergone a substantial rehabilitation are now covered by San Francisco’s local eviction controls, these units are not covered by the less protective “just-cause” requirements of AB 1482 (the “California Tenant Protection Act of 2019”). Also note that some units remain exempt from San Francisco's eviction controls regardless of when they were built, such as commercial units and certain units where rents are controlled or regulated by another government agency.
Amendments were made to Chapter 37A.1 of the San Francisco Administrative Code (the Rent Board Fee Ordinance), and the following sections of the Rent Ordinance: 37.2, 37.3, 37.9A, 37.9D, 37.10A, and 37.10B. A copy of the legislation is available here [Ord No. 296-19].
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