- Rent Board Amends the Rules and Regulations to incorporate the City's Parental Leave Policy for Commissioners
- Annual Rent Increase for 3/1/23 - 2/29/24 Announced
- City Appeals Superior Court Order Enjoining Enforcement of 10-Day Warning Notice Legislation - Update #2 (09/27/22)
- New Legislation re Ellis Act Evictions
- Rent Board Amends the Rules and Regulations re Housing Inventory Reporting Requirements
- New Legislation re Tenant Organizing and Tenant Associations
- New Legislation Requires Landlords Pursuing Certain Evictions to First Provide the Tenant a Written Warning Letter and 10-Day Period to Cure.
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Sections
- Rent Board Amends the Rules and Regulations to incorporate the City's Parental Leave Policy for Commissioners
- Annual Rent Increase for 3/1/23 - 2/29/24 Announced
- City Appeals Superior Court Order Enjoining Enforcement of 10-Day Warning Notice Legislation - Update #2 (09/27/22)
- New Legislation re Ellis Act Evictions
- Rent Board Amends the Rules and Regulations re Housing Inventory Reporting Requirements
- New Legislation re Tenant Organizing and Tenant Associations
- New Legislation Requires Landlords Pursuing Certain Evictions to First Provide the Tenant a Written Warning Letter and 10-Day Period to Cure.
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Rent Board Amends the Rules and Regulations to incorporate the City's Parental Leave Policy for Commissioners
After a public hearing on December 13, 2022, the Rent Board’s Rules and Regulations were amended by the Rent Board's Commission to add Section 2.21, titled “Parental Leave Policy”.
December 13, 2022
After a public hearing on December 13, 2022, the Rent Board’s Rules and Regulations were amended by the Rent Board's Commission to add Section 2.21, titled “Parental Leave Policy”. Section 2.21 incorporates Administrative Code Section 67B.1, which authorizes Board Members to take parental leave in certain circumstances.
Back to topAnnual Rent Increase for 3/1/23 - 2/29/24 Announced
For rent-controlled units, the annual allowable increase amount effective March 1, 2023 through February 29, 2024 is 3.6%.
November 17, 2022
For rent-controlled units, the annual allowable increase amount effective March 1, 2023 through February 29, 2024 is 3.6%. This amount is based on 60% of the increase in the Consumer Price Index for All Urban Consumers in the Bay Area, which was 6% as posted in November 2022 by the Bureau of Labor Statistics. To calculate the dollar amount of the 3.6% annual rent increase, multiply the tenant's base rent by .036. For example, if the tenant's base rent is $2,000.00, the annual increase would be calculated as follows: $2,000.00 x .036 = $72.00. The tenant's new base rent would be $2,072.00 ($2,000.00 + $72.00).
The annual allowable increase amount effective March 1, 2022 through February 28, 2023 is 2.3%.
Read this article to learn more about rent increases.
Here's a complete list of past annual allowable increases. This document is also available in our office.
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City Appeals Superior Court Order Enjoining Enforcement of 10-Day Warning Notice Legislation - Update #2 (09/27/22)
Ordinance No. 18-22, which became effective on March 14, 2022, requires landlords pursuing certain types of evictions to first provide the tenant a written 10-day warning letter and an opportunity to cure before serving an eviction notice.
Update #2 (September 27, 2022)
The San Francisco Apartment Association and Small Property Owners of San Francisco Institute filed a lawsuit challenging the validity of the legislation described below. The case is San Francisco Apartment Assoc. et al. v. City and County of San Francisco, Superior Court Case No. CPF-22-517718. On March 23, 2022, the Court issued an Order temporarily staying the legislation pending resolution of the case. On September 27, 2022, the Superior Court issued a decision granting the petitioners' challenge in part. The decision prevents the City from enforcing the legislation solely with respect to evictions based on the nonpayment of rent. However, the decision lifts the temporary stay and permits the legislation to be enforced with respect to other types of evictions for which a 10-day warning notice is required. The City has appealed the Superior Court's judgment. While the appeal is pending, landlords need not serve a 10-day warning notice with respect to eviction notices and/or unlawful detainers for non-payment of rent, but all other aspects of Ordinance No. 18-22 remain in effect. A summary of the legislation is described below (annotated pursuant to the Decision in Superior Court Case No. CPF-22-517718).
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Ordinance No. 18-22, which became effective on March 14, 2022, requires landlords pursuing certain types of evictions to first provide the tenant a written 10-day warning letter and an opportunity to cure.
Prior law
The Rent Ordinance identifies various “just causes” for landlords to evict their tenants. Sections 37.9(a)(1)-(6) involve situations where the tenant is at fault for the eviction: (2) violating a material term of the tenancy; (3) committing or allowing a nuisance that is severe, continuing, or recurring; (4) using or permitting the unit to be used for any illegal purpose; (5) refusal to execute a written extension or renewal of the lease under the same terms as existed previously; and (6) refusal to allow the landlord access to the unit as required by state or local law. If the tenant commits one of these violations, the landlord may have just cause to evict. However, the Rent Ordinance does not generally specify how much time the landlord must give the tenant to cure the violation before beginning the eviction process.
What does this legislation change?
The legislation effective March 14, 2022 amends Rent Ordinance Section 37.9 to require landlords to give the tenant a 10-day warning letter and opportunity to cure before serving a formal eviction notice under Sections 37.9(a)(2-6). However, a 10-day warning letter is not required if (a) a longer notice and cure period already applies (for example, under the terms of the lease agreement between the parties), or (b) the tenant is causing or creating an “imminent risk of physical harm to persons or property”. The new warning letter would precede a formal eviction notice under California Code of Civil Procedure §1161, not replace it, and any additional “cure” period required by State law must be provided in addition to the 10-day warning period.
In addition, the legislation requires the Rent Board to create a standard form that landlords may use to provide the required warning to their tenants. The form can be found here in our Forms Center and is available in our office.
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New Legislation re Ellis Act Evictions
The Board of Supervisors and Mayor of San Francisco recently passed legislation that amends the San Francisco Rent Ordinance regarding Ellis Act evictions. The legislation is effective on July 18, 2022.
Background
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. On January 1, 2020, the California Legislature adopted AB 1399 to clarify and amend certain portions of the Ellis Act.
What does this legislation change?
1. Clarifies that the “date of withdrawal” for the entire property as a whole is the latest termination date of any unit.
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. The amendments to Ordinance Section 37.9A clarify that the “date of withdrawal” for the entire property as a whole is the latest termination date of any unit.
2. Requires that if any unit is returned to the rental market during the 10-year period of constraints, the entire property must be returned to the market, with exceptions for certain owner-occupied units.
In 2020, AB 1399 amended State law 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 clarified 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. The new amendments to Ordinance Section 37.9A now make this a local requirement.
3. Relocation payments for Ellis Act evictions have been increased.
Relocation payments have been increased for Ellis Act eviction notices served on or after September 1, 2022. Currently, San Francisco's Rent Ordinance requires landlords who are evicting under the Ellis Act to provide relocation payments of approximately $7,426 per eligible tenant, capped at $22,280 per household, plus an additional $4,951 for each tenant who is senior or disabled. Effective September 1, 2022, these amounts have been increased to $10,000 per eligible tenant, capped at $30,000 per household, plus an additional $6,700 for each tenant who is senior or disabled. These new amounts will increase each March 1.
4. Clarification re punitive damages and Ordinance clean-up.
Finally, the new amendments (a) clarify (pursuant to AB 1399) that an owner’s payment of punitive damages following the owner’s unlawful re-rental of a unit does not extinguish the owner’s obligation to re-offer the unit upon re-rental to the displaced tenants, and (b) deletes certain inoperative Code provisions related to relocation payments, including former Administrative Code Section 37.9A(e)(3)(E).
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Rent Board Amends the Rules and Regulations re Housing Inventory Reporting Requirements
After a public hearing on July 12, 2022, the Rent Board’s Rules and Regulations were amended by the Rent Board's Commission to add Part 13, titled “Reporting Obligations Under Rent Ordinance Section 37.15”. Part 13 includes the following new Sections, all to be effective on July 12, 2022:
Section 13.10 (Reporting of "Approximate Square Footage");
Section 13.11 ("Bedroom" and "Bathroom" Defined);
Section 13.12 (Date "Occupancy Commenced");
Section 13.13 (No Penalty for Inadvertent Failure to Report or Accurately Convey Information that is Unknown and Otherwise Unobtainable by Legal Means and Reasonable Efforts), and
Section 13.14 (Licensing - Notice of Rent Increase).
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New Legislation re Tenant Organizing and Tenant Associations
The Board of Supervisors and Mayor of San Francisco recently passed legislation that gives tenants enhanced rights to organize within their buildings (informally referred to as the “Tenant Right-To-Organize legislation” or "Tenant-At-Home Ordinance"). While this new law does not amend the Rent Ordinance, it does amend Chapter 49A of the Administrative Code (titled "Residential Tenant Communications") and defines certain tenant organizing activities as “housing services” that a landlord must provide, as described below. The full text of Chapter 49A is available in the “Laws and Regulations” tab found on the homepage of the Rent Board’s website.
Prior law
Chapter 49A of the Administrative Code (titled “Residential Tenant Communications”), which was effective in 2004, states in part that a landlord may not prohibit tenants from using building common areas to distribute literature on behalf of a tenants' association or other tenants' organization regarding issues of common interest or concern to other tenants.
What does this legislation change?
The Right-To-Organize legislation amends Chapter 49A to require landlords to allow tenant organizing activities in building common areas – not just literature distribution, but also other activities regarding issues of “common concern” such as initiating contact (e.g., door-to-door surveys) to ascertain interest in forming a tenant association, and allowing organizing activities and participation by non-resident advocates or guests. The law also states that tenants in buildings with five or more rental units (unless the landlord is a 501(c)(3) non-profit) may form “Tenant Associations” by securing the approval of a majority of the occupied units in the building. Tenant associations may hold regular meetings open to all building occupants and elect officers that serve for two-year terms. The landlord may request once every three years that the Tenant Association reconfirm that it still has the support of the majority of occupied units. Landlords and Tenant Associations will be required to meet and confer with each other in good faith. On written request of the Tenant Association, the landlord (or their representative) must attend at least one Tenant Association meeting every three months.
How does this legislation relate to the Rent Ordinance?
The legislation states that a tenant’s right to have organizing activities in their building is a “housing service” under the Rent Ordinance, and that a landlord’s failure to allow organizing activities or to meet and confer with a Tenant Association in good faith may be the basis to support a substantial decrease in housing services petition for a rent reduction. For more information about filing a tenant petition alleging a substantial decrease in housing services, please refer to Rent Board Info-To-Go Topic No. 352.
When does the law go into effect?
The amendments to Chapter 49A are effective on April 11, 2022. In addition, for lease agreements entered into or amended on or after January 1, 2022, the tenant may not waive their right to engage in Organizing Activities as set forth in Chapter 49A and any provision of a lease agreement that purports to waive a tenant’s right to engage in Organizing Activities is of no effect.
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New Legislation Requires Landlords Pursuing Certain Evictions to First Provide the Tenant a Written Warning Letter and 10-Day Period to Cure.
[August 3, 2022 Update: The San Francisco Apartment Association and Small Property Owners of San Francisco Institute filed a lawsuit challenging the validity of the legislation described below. The case is San Francisco Apartment Assoc. et al. v. City and County of San Francisco, Superior Court Case No. CPF-22-517718. On March 23, 2022, the Court issued an Order temporarily staying the legislation pending resolution of the case. On July 22, 2022, the Superior Court issued a decision granting the petitioners' challenge in part. The decision prevents the City from enforcing the legislation solely with respect to evictions based on the nonpayment of rent. However, the decision lifts the temporary stay and permits the legislation to be enforced with respect to other types of evictions for which a 10-day warning notice is required. The City has not yet indicated if it will appeal the judgement.]
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Ordinance No. 18-22, which became effective on March 14, 2022, requires landlords pursuing certain types of evictions to first provide the tenant a written warning letter and an opportunity to cure.
Prior law
The Rent Ordinance identifies various “just causes” for landlords to evict their tenants. Sections 37.9(a)(1)-(6) involve situations where the tenant is at fault for the eviction: (1) failure to pay rent; (2) violating a material term of the tenancy; (3) committing or allowing a nuisance that is severe, continuing, or recurring; (4) using or permitting the unit to be used for any illegal purpose; (5) refusal to execute a written extension or renewal of the lease under the same terms as existed previously; and (6) refusal to allow the landlord access to the unit as required by state or local law. If the tenant commits one of these violations, the landlord may have just cause to evict. However, the Rent Ordinance does not generally specify how much time the landlord must give the tenant to cure the violation before beginning the eviction process.
What does this legislation change?
The legislation effective March 14, 2022 amends Rent Ordinance Section 37.9 to require landlords to give the tenant a 10-day warning letter and opportunity to cure before serving a formal eviction notice under Sections 37.9(a)(1-6). However, a 10-day warning letter is not required if (a) a longer notice and cure period already applies (for example, under the terms of the lease agreement between the parties), (b) the tenant is causing or creating an “imminent risk of physical harm to persons or property”; or (c) the landlord is seeking to recover possession based on the non-payment of rent that came due between March 1, 2020 and March 31, 2022 (a specific notice period is required by AB 832 during that time). The new warning letter would precede a formal eviction notice under California Code of Civil Procedure §1161, not replace it, and any additional “cure” period required by State law must be provided in addition to the 10-day warning period.
In addition, the legislation requires the Rent Board to create a standard form that landlords may use to provide the required warning to their tenants. The form can be found here in our Forms Center and is available in our office.
March 14, 2022
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