January 25, 2000

Commissioner Hobson appeared on the record at 6:08 p.m.; Commissioners Mosser and Marshall appeared at 6:11 p.m.; Commissioner Murphy arrived at 6:20 p.m.; and Commissioner Justman appeared at 6:25 p.m. Commissioner Mosser went off the record at 6:50 p.m.

The Board continued their discussion of how best to conform Rules Section 6.14 with the provisions of the Costa-Hawkins Rental Housing Act of 1995. President Wasserman began the meeting by thanking Senior Hearing Officer Tim Lee for his work on a proposed re-draft of 6.14, which greatly simplifies the language and makes more clear the Board’s intent.

The new proposal contains two clear definitions of "original" and "subsequent" occupants that apply to both residents of units prior to January 1, 1996, and residents who commenced occupancy after that date. For residents who lived in a covered rental unit prior to January 1, 1996, the procedures currently codified in Section 6.14 apply, except that a landlord’s failure to give a 6.14 notice within 60 days of the landlord’s actual knowledge of the new tenant’s presence in the unit will create a rebuttable presumption that the landlord failed to act within a reasonable period of time in asserting their right to market rent after the last original tenant vacates the premises. For tenants who commenced occupancy on or after January 1, 1996, the landlord may raise the rent to "market", unless they waive their right to do so in one of three ways: by making representations as to the tenant’s right to remain in the unit at the same rent; by not issuing a rent increase or reserving the right to do so within 90 days of knowing that the last original tenant has vacated the premises; or by receiving written notice from an original tenant that a new tenant is occupying the premises and thereafter accepting rent from that new tenant.

The Board discussed the proposal and made certain changes to address concerns expressed by several of the Commissioners. Commissioner Marshall expressed her view that the version of Section 6.14 that was in effect prior to the Section being amended to comport with Costa-Hawkins in July of 1996 should be reinstated for pre-1/1/96 tenancies. Several of the Landlord Commissioners objected to having to give notice after the departure of the last original tenant if a 6.14 notice had already been given at the inception of the tenancy, or soon after knowledge of a new tenancy. They felt that a landlord’s failure to do so should not be a "gotcha"; the Tenant Commissioners felt it unfair that a landlord’s issuance of such a notice would guarantee their right to raise the rent, but that failure to do so would have no reprecussions.

The Board agreed to talk to their respective constituencies, and return to this discussion at the meeting on February 1st. The amended proposed language reads as follows below:

President Wasserman adjourned the meeting at 7:45 p.m.