SFAA Turns 90!
SFAA celebrated its ninetieth anniversary with the best of the rental housing industry on November 29, 2007, at the Palace Hotel.

The evening began with a cocktail party celebrating all the nominees for SFAA’s first annual Trophy Awards in the hotel’s lovely French parlor. As guests got into the festive spirit, they were able to look down on the Palace Atrium and take in the lovely holiday decorations.

The dinner awards show started at 6 p.m. with 350 in attendance. Guests ranged from San Francisco Supervisors Sean Elsbernd, Carmen Chu and Michaela Alioto-Pier to State Assemblywoman Fiona Ma to Rent Board Executive Director Delene Wolf. “The feedback from guests was overwhelming. Everyone was so happy to be there and excited to see who the big winners would be,” relays SFAA Education and Events Director Vanessa Khaleel, who helped coordinate the event. “It was an amazing evening for everyone and all the SFAA staff felt beyond proud.”

The awards were handed out after dinner, with categories ranging from Best Maintenance Technician to Best Amenities of the Year. Next month, the magazine will focus on the Trophy Awards, featuring profiles of the winners and pictures from the event.

Rent Increase Set at 2%
As subject to the San Francisco Rent Ordinance, many residential properties may only increase the rents in accordance with the San Francisco Allowable Rent Increase. Effective March 1, 2008, to February 28, 2009, you will be able to increase your rent by 2%. You may also bank this amount. This new percentage represents a .5% increase from the current 1.5% that we are currently allowed.

At press time, SFAA had not been given the interest on security deposit percentage. Tune into this column to find out what the new percentage is when it is announced.

New Board Member David Gruber
SFAA is pleased to announce that long-time member David Gruber of Gruber and Gruber Properties has joined the Board of Directors. Gruber has been a member since 1993 and joined the board to “make sure we try everything politically possible to elect better representatives, to keep the organization as cohesive as possible for maximum effect, and to continue to improve our services for the membership.” Gruber also holds leadership positions at the San Francisco Rent Board Commission and the Coalition for Better Housing.

Water Passthrough at the Board
This month, San Francisco Supervisor Michaela Alioto-Pier will bring legislation to the San Francisco Board of Supervisors to create a water rate passthrough, which would cover 50% of the recently increased rates or 70% in buildings with additional conservation amenities like low-flow fixtures. Mayor Gavin Newsom, SFAA and the San Francisco Public Utilities Commission support this passthrough, which would not require a San Francisco Rent Board petition to pass the fees on to tenants. SFAA Executive Director Janan New points out that the passthrough would be more than a win for landlords; it would be a win for the environment. “If tenants pay, then obviously they are going to conserve,” she argues. “If there’s no consequence, there’s no conservation.”

SFAA is working with the supervisors on the issue but, at press time, it was unclear what the specifics of the passthrough would be, or if a passthrough would be passed at all. If it is not passed this month, the SFAA will begin gathering signatures to reverse Proposition E, a 2001 ballot measure that gave the board the power to approve PUC rate increases without going to the voters. If the proposition is rescinded, all PUC increases since 2001 will be revoked and will need to pass at the ballot box to be reinstated. Contact your local supervisor to request passage of this important and green-minded passthrough.

SFAA Goes Paperless
Starting this month, SFAA will go greener by becoming an email-driven organization. For example, rather than reminding members of the monthly meetings via postcards, you will receive email notices about the meetings, as well as other events. The organization will also put more of its communications online at www.sfaa.org, creating a more comprehensive website for members. If you are not currently receiving SFAA’s email communications, please contact Member Services Coordinator Maria Shea at 415-255-2288 or via email at
maria@sfaa.org.

Medical Pot Club Landlords Targeted
The U.S. Drug Enforcement Administration has sent letters to 80 owners of buildings housing medical marijuana clubs in San Francisco. The letter simply notifies the property owner of the way that the property is being used; it does not demand that owners evict the clubs or set any deadlines for action. But it warns owners that, “violations of federal laws relating to marijuana may result in prosecution, imprisonment, fines and forfeiture of assets,” which could mean the property in question.

The state law was modified in 1996 to allow cannabis clubs that supply patients who are legitimately in need of medical marijuana, but the DEA does not recognize this allowance. It has sent similar letters to owners in Los Angeles and Sacramento.

Help for Struggling Home Owners on the Way?
City, state and even federal officials are working with the lending industry to try to stem the mass of foreclosures expected in the coming year. In San Francisco, Mayor Gavin Newsom and several supervisors called on lenders to stop administering risky loans like no-stated-income loans, to contact borrowers at risk for default six months before their rates are due to go up, to fund financial counseling services and, perhaps most importantly, to modify loan terms for homeowners making timely payments.

At the same time, Governor Arnold Schwarzenegger has hammered out a plan for four major subprime lenders to maintain current interest rates for some borrowers whose rates are scheduled to increase. To qualify, owners must live in their homes, have made on-time payments and prove that they cannot afford the higher rate. Owner-occupiers with no missed payments are also the only property owners who will qualify for a rate freeze worked out by the Bush Administration, which initially balked at the idea of asking lenders to keep rates unchanged.

Letter to the Editor
I write with good news: my O&M petition that included variable-rate loan interest was approved by the San Francisco Rent Board! I thought you’d be glad to know, since it is a small, but sweet, victory for landlords.

I also wanted to thank the SFAA for its help. My education process regarding how to effectively file these petitions—not to mention that I should even do them in the first place—has taken years, and all of it came either directly or indirectly from my SFAA membership and the services and classes it provides. I have attended numerous classes and presentations on the subject, and listened to a variety of legal Q&A questions. All of them have been very helpful. Even just informal networking with fellow members helped! So, thanks again for doing such an excellent job overall, and in particular with regard to advocacy and education on our behalf.

Regards,
A Happy Member