December 17, 1996

President Becker called the meeting to order at 6:05 p.m.

Commissioners Present: Becker; Bierly; Lightner; Marshall; Palma; Wasserman.

Commissioners not Present: Moore; Mosser; Murphy.

Staff Present: Grubb; Wolf.

Commissioner Gruber appeared on the record at 6:10 p.m.

MSC: To approve the Minutes of December 3, 1996.

(Marshall/Lightner: 4-0)

Robert Pender announced that the Tenants’ Network will be having a fourth birthday party on Friday, January 24, 1997 at 6:00 p.m. at the Unitarian Church at Franklin and Geary.

1. 3130 Taraval St. #4 R001-26A

   The landlord’s petition for a rent increase based on increased operating expenses was granted. However, the hearing officer found that the increase was not effective on the date specified in the notice, because the tenant credibly testified that he had not received the notice and the landlord failed to comply with Code of Civil Procedure Section 1162 in service of the notice. An annual increase that was paid by the tenant because it was his "anniversary date" was allowed as of the date the tenant commenced payment. On appeal, the landlord maintains that the posting requirement of CCP Section 1161 is only applicable to judicial proceedings; that service by regular and certified mail should have been sufficient and the fact that the tenant failed to claim the certified letter is outside of the landlord’s control; and the fact that the tenant paid the operating expense portion of the increase is evidence that the notice was received.

   MSC: To accept the appeal and remand the case on the record on the issues of whether there was actual notice and, if so, the legal effect thereof; and to determine whether the tenant commenced paying the increase in March or April. (Becker/Lightner: 5-0)

2. 730 Stockton St. #6 & #34 R001-27A

   The tenants’ petitions alleging overpayments in rent due to capital improvement passthroughs having been improperly included in base rent and not having been discontinued upon amortization were granted and the landlord was found liable to the tenants in the amounts of $1,120.43 and $703.96. On appeal, the landlord asserts that the tenants’ petitions should be denied due to laches, as the tenants waited an unreasonable period of time before filing; not all banked increases that the landlord was entitled to were identified or calculated correctly; the systematic pattern of rounding increases up and down should serve to explain and excuse the excessive rent increases; the tenants’ conduct made it impossible for the landlord to correctly calculate the appropriate amount of rent increases; and the hearing officer was biased against the landlord.

   MSC: To deny the appeal, except for the Technical Correction that will be issued by the Hearing Officer. (Marshall/Becker: 5-0)

3. 170 Highland Ave. R001-28A

   The tenants’ petition alleging substantial decreases in housing services was granted and the landlord was found liable to the tenants in the amount of $4,080.00 due to many serious habitability defects on the premises. The landlord failed to appear at the properly noticed hearing and alleges on appeal, under penalty of perjury, that he failed to receive notice of the hearing. The landlord also claims on appeal that he has substantially complied and rectified many of the conditions about which the tenants complained.

   MSC: To accept the appeal and remand the case to the same hearing officer for a new hearing. (Lightner/Gruber: 5-0)

4. 1393 Goettingen St. R001-60R

   The landlord’s petition for certification of costs incurred in painting this single family dwelling was granted, resulting in a monthly passthrough in the amount of $20.00. The tenants appeal the decision on the grounds of financial hardship. Since the tenant’s wife failed to fill out a separate "Hardship Application", it was the consensus of the Board to continue this case to the next meeting in order for staff to contact the tenants.

5. 705 Shotwell St. #A R001-29A

   The tenant’s petition alleging substantial decreases in housing services was granted, in part, and the landlord was found liable to the tenant in the amount of $482.50 due to substandard conditions on the premises. The landlord failed to appear at the properly noticed hearing and alleges on appeal that he failed to receive notice of the hearing. The landlord also maintains that certain of the problems are the fault of the tenant; that he has received no other complaints from occupants of the building; and that many of the conditions have been remedied.

   MSC: To accept the appeal and remand the case to the same hearing officer for a new hearing. (Lightner/Becker: 5-0)

In addition to correspondence concerning cases on the calendar, the Commissioners received the following communications:

1. A letter from the State Bar regarding their referral of Attorney David Dawson for questionable business practices, stating that their investigation is in abeyance pending the resolution of litigation regarding a claim of wrongful eviction. President Becker will follow up with a phone call.

2. Notice that the allowable annual rent increase as of March 1, 1997 through February 28, 1998 will be 1.8%.

3. A Memorandum from Senior Hearing Officer Sandy Gartzman regarding the office’s mediation statistics for the months of October and November, 1996. Of the mediations actually conducted in November, 88% resulted in settlement.

In the absence of Executive Director Grubb, Deputy Director Wolf informed the Board that the last 5:30 Board meeting will be on January 7, 1997. After that date, commencing with the meeting on January 21, 1997, all meetings will begin at 6:00 p.m. Additionally, a Supplemental Budget Request for database development and temporary salaries passed its first reading before the full Board of Supervisors on Monday, December 16th.

1. Assembly Bill 3244 (Hawkins)

   Commissioner Wasserman reported back to the Board regarding her examination of issues raised by the passage of Assembly Bill 3244 (Hawkins) and stated that, in her, the Deputy Director and lobbyist Christine Minnehan’s opnions, Rules and Regulations Section 6.14 did not require any further amendment(s) at this time. The other Commissioners concurred.

2. Codification of Artist Live/Work Policy

   The Board briefly discussed a Memorandum prepared by the Deputy Director at the request of Commissioner Becker regarding possible codification of the Board’s Artist Live/Work Policy, adopted on January 24, 1982. The Commissioners discussed several ancillarly issues, including: the policy reason(s) behind the probhibition of buildings that qualify under the substantial rehabilitation provisions of the Ordinance qualifying for exemption under the Live/Work criteria; whether individual units can be exempted from the provisions of the Ordinance, or if exemption of the whole building is necessary; examination of "prior residential use" in this and the new construction exemption contexts; and concerns over sanctioning substandard housing raised in a Memo from Commissioner Murphy. Discussion of this issue will be continued at the January 7, 1997 meeting.

Bill Quan, the landlord involved in the case at 730 Stockton Street #6 (R001-27A), addressed the Board regarding his disappointment at the denial of his appeal. He also expressed his opinion that the Costa-Hawkins legislation is quite clear (Assembly Bill 1164), and that there is no need for the Board to re-write Rules and Regulations Section 6.14.

December 24 & 31, 1996 - NO MEETINGS (Happy Holidays!)

January 7, 1997 - 5:30 p.m.

8 appeal considerations (1 cont. from 12/17/96)

Old Business: Codification of Artist Live/Work Policy

President Becker adjourned the meeting at 7:40 p.m.