June 2003

Legal Victories

Over the past two months, San Francisco courts handed down two important rulings that affected landlord-tenant law locally. First, some of last year’s “Daly Amendments” to the Rent Ordinance were ruled
unconstitutional and held to be a violation of the First Amendment and the right to self-representation. In a second, more profound case, a judge has ruled 1998’s Proposition G to be unconstitutional. By next month these pages should carry a detailed analysis of these rulings.

Gonzalez’ Redux

After a hearing marked by delays and political maneuvering, the Board of Supervisors’ Housing and Land Use Committee heard the opening salvos on legislation that has come to be known as the “Gonzalez Amendments” to the Rent Ordinance. Sponsored by board President Matt Gonzalez, the legislation contains a San Francisco Tenants Union “wish list” of changes to the Rent Ordinance. Well attended by over 300 San Francisco landlords, the meeting lasted into the night as residents testified for or against the proposal. The evening ended without action taken on the proposal. Since then, Supervisor Gonzalez has indicated he will divide the legislation into approximately 13 separate pieces and hold hearings on each one of them. At this time, there is still a lack of clarity regarding a timetable for these additional hearings. The following is a breakdown of Gonzalez’ amendments:

Definition of Rental Units
“Clarify the definition of rental units to include all residential units, regardless of zoning or legal status.”

Limit Removal of Storage Units and Parking
“Provide that parking and storage or similar facilities on the same lot may not be severed by the landlord without just cause or tenant consent, except where necessitated by serious landlord hardship or circumstances> beyond the landlord’s control.”

Hotel Ordinance
“Extend coverage of the ordinance to non-tourist tenancies in residential hotels by eliminating the 32-day residency requirement for those tenancies.” Limited Banked Rent Increases “Limit imposition of banked rent increases to 8% per year and require more specific notice.”

Permit Tenant Pied-à-terres
“Change Subsection 37.3(a) ‘Rent Increase Limitations for Tenants in Occupancy’ and Subsection 37.3(b) ‘Notice of Rent Increase for Tenants in Occupancy’ by deleting the phrase ‘in occupancy’ from both subsections.”

Additional Notices for Costa-Hawkins
“Require more specific notice for rent increases authorized under California Civil Code Sections 1954.50 et seq., and require a rent arbitration hearing for certain increases not authorized by Civil Code Sections 1954.50 et seq.”

Prohibit Rent Increases for Additional Occupants
“Prohibit rent increases or evictions solely for additional occupants, where the total number of occupants is within Housing Code occupancy limits.”

Statute of Limitations
“Expand the statute of limitations—from three years to five years from discovery—for refunds of rent overpayments due to null and void rent increases.”

Good Faith
“Clarify that all endeavors to recover possession for just cause under Section 37.9(a), must be in good faith without ulterior motive and with honest intent.”

Relocation Expenses
“Require relocation expenses of $2,000 for each authorized occupant (including any minor child) who has lived in a unit for 12 months as of the time of vacation of the unit, where the unit is to be demolished or otherwise permanently removed from housing use, or where the tenant must relocate due to capital improvements or substantial rehabilitation work or an owner-move-in eviction, with one-half paid upon notice and one-half paid within 72 hours after vacation of the unit, and with these amounts to be increased annually according to the rate of increase in the ‘Rent of Primary Residence’ expenditure category of the Consumer Price Index (CPI).”

Civil Action Against New Owners
“Provides that a tenant’s civil action against a landlord for abridgment of rights under the Ordinance may also be brought against the landlord’s successor in interest.”

Clean Up
“Certain technical corrections to conform numbering to prior Chapter 37 amendments.”

Families
“Amending San Francisco Housing Code Chapter 5, Section 503(b) to make a technical correction, and amending San Francisco Housing Code Chapter 5, Section 503(d), to clarify that the protections of that Section extend to all persons by deleting the references to ‘families,’ to clarify that the Section promotes affordable housing, and to clarify that the Section protects prospective and current tenants.”

New Associate Members

A R General Contractor 415-665-8569
Specializing in remodeling, electrical, plumbing, linoleum, woodworking and maintenance, owner Alvaro Ramirez’ philosophy is a straightforward one: “We can handle anything.” With over 13 years experience in general contracting for San Francisco homeowners and landlords, the company is eager to begin assisting SFAA members with their general contractor needs.

Camelot Private Security 925-367-5206

Haight Street Management 415-431-7655
Haight Street Management, a division of Haight Street Mortgage Co. Inc., was founded 50 years ago with the policy of building relationships with its clients. This guiding principle still holds true today in everything they do. HSM has a long history of offering affordable, reliable property management services to its clients.

Currently HSM manages various residential and multi-use properties in San Francisco, Daly City, the Peninsula and other parts of San Mateo County. In addition, the company is part of the property> management team for the Fillmore Renaissance Mixed-Use Development recently approved by the San Francisco Redevelopment Agency.

Lynch, Gilardi & Grummer 415-397-2800
Lynch, Gilardi and Grummer is a mid-sized downtown law firm representing clients in a broad range of litigation, including real estate and related matters. Their real estate practice includes residential and commercial lease disputes, unlawful detainer and wrongful eviction litigation, and professional liability (e.g., brokers, architects, and engineers). The firm has aggressively represented property owners in San Francisco for 25 years. Their real estate department is staffed with seasoned attorneys, many of whom also hold real estate and contractors’ licenses, and engineering degrees.