San Francisco Rent Board News Archive: 2023

Annual Rent Increase for 3/1/24 - 2/28/25 Announced

For rent-controlled units, the annual allowable increase amount effective March 1, 2024 through February 28, 2025 is 1.7%.

November 17, 2023

For rent-controlled units, the annual allowable increase amount effective March 1, 2024 through February 28, 2025 is 1.7%. This amount is based on 60% of the increase in the Consumer Price Index for All Urban Consumers in the Bay Area, which was 2.8% as posted in November 2022 by the Bureau of Labor Statistics. To calculate the dollar amount of the 1.7% annual rent increase, multiply the tenant's base rent by .017. For example, if the tenant's base rent is $2,000.00, the annual increase would be calculated as follows: $2,000.00 x .017 = $34.00. The tenant's new base rent would be $2,034.00 ($2,000.00 + $34.00).

The annual allowable increase amount effective March 1, 2023 through February 29, 2024 is 3.6%.

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.

New Ordinance Amendments Regarding Tenant Associations

A tenant can have a tenant association representative present during the meetings with the landlord. Landlords must remain in attendance at meetings of the full tenant association until the end of the meeting (up to two hours). Additional clarifying definitions have been added.

November 10, 2023

Ord No. 203-23 amends Admin Code Chapter 49A and is effective on November 12, 2023.

Existing Law

Tenants in a building may establish a “tenant association” by providing their landlord with a petition signed by tenants representing at least 50% of the occupied units, certifying that they are forming a tenant association.

The landlord must confer in good faith with the tenant association on issues of common concern, and on request, must attend at least one tenant association meeting every three months.

If a landlord does not comply with these obligations, it can support a tenant petition to the Rent Board for a rent reduction.

A tenant association remains operative so long as it represents at least 50% of the occupied units in the building.

Every three years, a landlord can require the tenant association to recertify that it represents at least 50% of the occupied units. If the tenant association does not timely re-certify, it is temporarily suspended until such time as it has re-certified.

Amendments to Current Law

The ordinance specifies that an individual tenant can have a tenant association representative present during the tenant’s individual meetings with the landlord.

It also requires landlords to remain in attendance at meetings of the full tenant association until the end of the meeting (up to two hours).

The ordinance also addresses what it means to confer in good faith and the types of matters that may be discussed with a tenant association.

"Confer in good faith" means that the parties shall have the mutual obligation, personally or through their authorized representatives, to meet and confer and continue for a reasonable period of time as set forth in Section 49A.4, in order to exchange freely information, opinions, and proposals, and to endeavor to reach agreement.

The ordinance clarifies that a duly-formed tenant association remains in good standing unless and until either:

• It fails to re-certify on the landlord’s request (which can occur no more than once every three years), or
• A new tenant association representing a greater number of occupied units is formed to take its place

New Ordinance Amendments Regarding Exempt Units

Buildings where the owner has obtained tax-exempt multifamily revenue bonds are not automatically exempt from the rent increase limitations of the Rent Ordinance.

August 28, 2023

Legislation recently passed that amended the definition of “rental unit” in Rent Ordinance Section 37.2(r)(4) to include properties where the owner has obtained tax-exempt multifamily revenue bonds. The amendments were effective August 28, 2023.

Background

In general, dwelling units whose rents are controlled or regulated by another government agency are entirely exempt from the Rent Ordinance (a “rent-regulated unit”). Thus, if a landlord enrolls in a government program to obtain tax-exempt multifamily revenue bonds, the landlord may follow the rent regulations of that government program instead of the Rent Ordinance. 

What does this legislation change?

Ordinance Section 37.2(r)(4) was amended to state that if a unit was already tenant-occupied and subject to the Rent Ordinance at the time the landlord obtained tax-exempt multifamily revenue bonds, the unit will remain subject to the Rent Ordinance and will not be exempt as a “rent-regulated unit.” However, once all the occupants who lived in the unit at the time of the bond financing cease to permanently reside there, or if all the tenants in the unit agree to opt out of the Rent Ordinance in writing, then the unit will become exempt from the Rent Ordinance as a “rent-regulated unit” and the landlord can set the rents under the applicable government program.

Local Eviction Protections for Non-Payment of Rent During COVID-19 Extended Through August 29, 2023

The local eviction moratorium was extended to cover rent payments that come due within 60 days after the Mayor's COVID-19 emergency proclamation ends, and to include units where the rent is controlled or regulated by the City. Since the Mayor's Proclamation of Local Emergency is scheduled to expire on June 30, 2023, these protections are extended through August 29, 2023 (60-days after June 30, 2023) but will not apply to rent payments that become due on or after August 30, 2023.

May 15, 2023

Read below for some background on the local eviction moratorium for pandemic-impacted tenants and a summary of what changed:

Background

Rent Ordinance Section 37.9(a)(1)(D) prohibits landlords of all units covered by the Rent Ordinance 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. Specifically, no tenant may be evicted for non-payment of rent that became due between March 16, 2020 and September 30, 2020; or between July 1, 2022 and the end of the Mayor’s COVID-19 Proclamation of Local Emergency.Please note that pandemic-impacted tenants with past-due rent that came due during these periods are permanently protected against eviction for non-payment of rent, even after the Mayor terminates her COVID-19 Emergency Proclamation. However, these tenant protections only limit evictions and do 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.

What does this legislation change?

Ordinance Nos. 47-23  and 072-23 extend these protections, by applying them to rent that comes due within 60 days after the Mayor’s emergency proclamation ends and by including units where the rent is controlled or regulated by the City (for example, units regulated by the Mayor's Office of Housing and Community Development or the Department of Homelessness and Supportive Housing).  The Mayor announced on May 3rd that the Proclamation of Local Emergency will expire on June 30, 2023. Thus, these protections are extended through August 29, 2023 (60-days after June 30, 2023) but will not apply to rent payments that become due on or after August 30, 2023.

Update - Court of Appeal Decision re 2020 Amendments to the Buyout Ordinance

On May 2, 2023, the California Court of Appeal issued an unpublished decision affirming the lower court's ruling that invalidated subsections (c) and (i) of the Amended Buyout Ordinance.

May 03, 2023

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]. Specifically, the Amended Buyout Ordinance made the following changes to Rent Ordinance Section 37.9E:

• 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).

In addition, subsections (c) and (i) of the Amended Buyout Ordinance made the following changes to the requirements for buyout negotiations that precede the filing of an unlawful detainer (eviction) lawsuit: 

• 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. [Rent Ordinance Section 37.9E(c)]
• The party who files the Buyout Agreement was required to inform the Rent Board if the Buyout Agreement concerns an unlawful detainer action. If so, the Rent Board was required to redact from the posted Buyout Agreement any information concerning the unlawful detainer action that may be confidential under State law. [Rent Ordinance Section 37.9E(i)]

On December 11, 2020, the San Francisco Superior Court found subsections (c) and (i) of the Amended Buyout Ordinance to be unlawful and enjoined the City from enforcing those provisions, but allowed the remaining sections of the legislation to remain intact. On May 2, 2023, the California Court of Appeal issued an unpublished decision affirming the lower court's Order. Thus, subsections (c) and (i) of the Amended Buyout Ordinance regarding buyout negotiations that precede an unlawful detainer continue to be enjoined, and the rest of the Amended Buyout Ordinance described above remains in effect. 

A new law passed by the City and County of San Francisco requires all residential property owners to provide certain information to the Rent Board about their property each year. In addition, the law creates new licensing requirements for landlords.

February 02, 2023

FOR IMMEDIATE RELEASE:

Wednesday, February 1, 2023

Contact: Christina Varner, Executive Director christina.varner@sfgov.org

***PRESS RELEASE***

SAN FRANCISCO RENT BOARD REMINDS PROPERTY OWNERS OF THE MARCH 1 HOUSING INVENTORY REPORTING DEADLINE

SAN FRANCISCO, CA – Residential property owners are required to report information about their units into San Francisco’s Housing Inventory by March 1, 2023. Property owners who report that a unit is tenant-occupied will receive a rent increase “license” that allows them to impose annual allowable and banked rent increases. Landlords who have not fulfilled their reporting requirements will not receive a license and will not be permitted to impose annual allowable and banked rent increases on a tenant until reporting is completed. Thus far, the San Francisco Rent Board has issued 12,000 licenses to permit owners to impose rent increases for the next year. That represents less than 5% of the estimated number of residential units in San Francisco.

Property owners of buildings with 10 or more units were required to report their units into the Inventory for the first time in 2022. These property owners must update their information and obtain new licenses to continue to impose rent increases after March 1, 2023.  Owners of properties with fewer than 10 units, including condos and single-family homes, are now also required to report into the Inventory annually.

“Property owners will find that reporting on their units in the Rent Board’s Portal is quick and straightforward, but if any owner encounters challenges, assistance is available. We strongly encourage owners to report into the Housing Inventory by March 1 to comply with the law and have peace of mind that they have a valid license issued for every rent increase imposed within the next year,” said Rent Board Executive Director Christina Varner. 

Owners were mailed a reminder in November 2022 and again in January.  Owners who want help submitting into the Inventory are urged to call the SF 311 Customer Service Center at 3-1-1 or (415) 701-2311 (from outside San Francisco) (TTY 7-1-1).

Residential property owners can report into the Housing Inventory at https://portal.sfrb.org.  The San Francisco Rent Board supports tenants and landlords in San Francisco by providing information and resources on the Rent Ordinance, which protects tenants from excessive rent increases and unjust evictions while assuring landlords fair and adequate rents. For more information, visit https://sf.gov/rentboard.

New Interest Rate for Security Deposits Effective 3/1/23

The rate of interest owed on deposits for the period March 1, 2023 through February 29, 2024 is 2.3%.

January 06, 2023

The rate of interest owed on deposits for the period March 1, 2023 through February 29, 2024 is 2.3%.

The rate of interest owed on deposits for the period March 1, 2022 through February 28, 2023 is 0.1%.

Pursuant to San Francisco Administrative Code, Chapter 49.2, the Rent Board calculates the interest rate according to the annual average of the 90-Day AA Financial Commercial Paper Interest Rate (rounded to the nearest tenth) for the immediately preceding calendar year as published by the Federal Reserve.

The new rate is published annually by the Rent Board in early January for the one-year period beginning March 1st.

Read this article to learn more about security deposits. 

Here's a list of interest rates for security deposits since September 1983. This list is also available at our office.

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