June 20, 2000

MINUTES OF THE REGULAR MEETING OF

THE SAN FRANCISCO RESIDENTIAL RENT

STABILIZATION & ARBITRATION BOARD,

Tuesday, June 20, 2000 at 6:00 p.m. at

25 Van Ness Avenue, Suite 70, Lower Level

 I. Call to Order

 President Wasserman called the meeting to order at 6:15 p.m.

 II. Roll Call

 Commissioners Present: Bierly; Gruber; Lightner; Marshall; Mosser; Murphy; Wasserman.

 Commissioners not Present: Becker; Murphy.

 Staff Present: Grubb; Wolf.

 Commissioner Justman appeared on the record at 6:35 p.m.

 III. Approval of the Minutes

 MSC: To approve the Minutes of June 6, 2000.

  (Gruber/Marshall: 5-0)

 IV. Remarks from the Public

 Robert Pender of the Tenants’ Network informed the Board that a very successful meeting was held with the tenants of Parkmerced on June 9^th; over 250 individuals were in attendance. Lots of signatures were collected for the two tenant initiatives being circulated for the November ballot. Because of the large crowd, there were problems regarding the fire code.

 V. Consideration of Appeals

 A. 2821 - 25^th St.   AT2K0079

 The tenant’s petition alleging an unlawful rent increase was dismissed due to his failure to appear at the properly noticed hearing. On appeal, the tenant asserted that, at the time of the hearing, he was in Guatemala because his mother was gravely ill. Since the tenant’s statement was not executed under penalty of perjury, it was the consensus of the Board to continue consideration of this case in order to obtain a sworn statement from the tenant and documentation regarding his having been out of the country at the time of the hearing. Nothing further was received from the tenant.

 MSC: To deny the appeal. (Lightner/Gruber: 5-0)

 B. 1487 Guerrero St.   AT2K0084

 The landlord’s petition for certification of capital improvement costs for 5 of 6 units was granted, in part. One tenant appeals the decision on the grounds of financial hardship.

 MSC: To accept the appeal and remand the case for a hearing on the tenant’s claim of financial hardship. (Marshall/Hobson: 5-0)

 C. 123 Sanchez St. #8   AT2K0083

 The tenant’s petition alleging an unlawful rent increase was granted because the Administrative Law Judge found that the tenant’s rent included parking. The Board accepted the landlord’s appeal and remanded the case to consider the equitable defense of laches. However, since the tape of the original hearing could not be located, and the parties disputed what was said at that hearing, a new hearing was held and a new Decision issued. In that Decision, a different Administrative Law Judge found that the tenant had failed to prove that his initial base rent included parking and that the rent increase for parking was therefore lawful as it was an additional housing service added after the commencement of the tenancy. The tenant appeals the remand decision, asserting that: the tenant was not given equal time at the hearing to respond to the landlord’s slanderous allegations; documents submitted by the landlord are fraudulent; and the prior building manager routinely offered parking spaces at no additional charge when they became available

 MSF: To deny the appeal. (Lightner/Gruber: 2-3; Hobson, Justman, Marshall dissenting)

 MSC: To accept the appeal and hold a de novo hearing before the Board. Each side will have a maximum of one hour: 5 minutes for an opening statement; 35 minutes to present the substance of their case; 15 minutes for cross-examination; and 5 minutes for a closing statement. (Hobson/Marshall: 4-1; Gruber dissenting)

 D. 2033 Turk St.   AL2K0085

 The tenants’ petition was granted and the landlord was found liable to the tenants in the amount of $768.81 due to an unlawful rent increase and $2,090.00 for decreased housing services in the unit. On appeal, the landlord maintains that the issue of the unlawful rent increase was resolved at a mediation session conducted prior to the subject hearing, and that the tenants deducted amounts owing from the landlord from their rent; and that the length of time given for rent reductions was excessive, as the services were restored shortly after notice of the defective conditions was given to the landlord by the tenants.

 MSC: To accept the appeal and remand the case to the Administrative Law Judge on the record to determine the intent of the parties regarding their settlement of the rent overpayment issue; to make any necessary offset against amounts owing from the landlord to the tenants; and to deny the appeal as to all other issues. A hearing will be held only if necessary. (Justman/Marshall: 5-0)

 E. 2009 Fulton St.   AT2K0086

 The tenant’s petition alleging an unlawful rent increase from $1,300 to $2,700 was denied because the Administrative Law Judge found that the tenant petitioner was properly served with a notice pursuant to Rules Section 6.14 and that the last original tenant had vacated the premises. On appeal, the tenant claims that: the original tenant had not relinquished possession of the premises, nor voluntarily terminated her tenancy, and that she is not precluded from maintaining two premises; while the original tenant’s rights have been substantially affected by this Decision, she was never notified as to the date of the hearing and her interests were not represented; and that the landlord knew of the petitioner’s occupancy of the unit for over 90 days prior to serving the 6.14 notice and acquiesced to his tenancy by adding his name to the lease.

 This appeal was withdrawn prior to the meeting because the parties reached a settlement.

 F. 645 Stockton St., Apt. 1100   AT2K0087

 The landlord’s petition for certification of capital improvement costs to 1 of 70 units was granted, resulting in a monthly passthrough in the amount of $19.45. The tenant appeals, asserting that: although legal title to the building has changed, it has been held by the same ownership since 1984; the building was in dire need of painting at the commencement of the tenancy; and the tenants were promised that the building would be painted when they were shown the apartment prior to moving in.

  MSC: To deny the appeal. (Justman/Gruber: 4-1; Hobson dissenting)

 VI. Communications

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

  A. The office workload statistics for the month of April, 2000.

  B. The Minutes of the Public Hearing Regarding the San Francisco Housing Study held on May 24, 2000 in City Hall.

 VII. Director’s Report

 Executive Director Grubb told the Board that the departmental budget for the next fiscal year will have its first hearing on Wednesday, June 21^st. If there is no increase in the annual rental unit fee that funds the department, the previously outlined personnel cuts will have to be effectuated.

 VIII. New Business

 President Wasserman announced that Commissioner Shirley Bierly has been appointed to the State Commission on Aging and that this will be her last Board meeting. President Wasserman expressed her heartfelt appreciation for the contributions made by Commissioner Bierly, and wished her well in her new endeavors on behalf of the entire Board.

 IV. Remarks from the Public (cont.)

 Robert Pender of the Tenants’ Network also commended the work of Commissioner Bierly. He went on to address problems associated with the installation of a new garbage system at Parkmerced, which he feels is difficult to handle, and constitutes an "erosion of his freedom." Attorney Steven Adair MacDonald informed the Board that there had been a meeting of the State Bar Landlord/Tenant Committee regarding the "ethics" of Ellis Act evictions. Specifically, issues surrounding "bluff" evictions, where the Notice of Constraints is not recorded pursuant to settlement with the tenants, were explored. It is anticipated that the courts will ultimately decide whether such situations are actionable. Additionally, Mr. MacDonald asked for the support and assistance of the Rent Board in the research and writing of a book he is working on about the Rent Board.

 X. Calendar Items

  June 27^th & July 4^th, 2000 - NO MEETINGS

  July 11, 2000

  8 appeal considerations

 XI. Adjournment

 President Wasserman adjourned the meeting at 7:30 p.m.