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May 18, 1999

May 18, 1999B>

 

 

 

MINUTES OF THE REGULAR MEETING OF
THE SAN FRANCISCO RESIDENTIAL RENT
STABILIZATION & ARBITRATION BOARD
Tuesday, May 18, 1999 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 6:10 p.m.
II. Roll Call
    Commissioners Present: Becker; Bierly; Gruber; Lightner; Marshall; Moore; Mosser; Wasserman.

    Commissioners not Present: Justman.

    Staff Present: Grubb; Wolf.

    Commissioner Murphy appeared on the record at 6:45 p.m.

III. Approval of the Minutes
    MSC: To approve the Minutes of May 4, 1999.

    (Becker/Lightner: 5-0)

IV. Consideration of Appeals
    A. 725 Ellis St. #506 T001-71R

    The tenant’s petition alleging an unlawful increase in rent was dismissed due to her failure to appear at the properly noticed hearing. On appeal, the tenant’s grand-daughter claims that there was a misrepresentation on the part of a translator, which led to a misunderstanding regardi�Öng the date of the hearing.

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

    B. 1536 Great Highway #38 T001-55A

    The tenant’s petition alleging an unlawful increase in rent and substantially decreased housing services was granted, in part. The hearing officer found the landlord liable to the tenant in the amount of $5,209.22 due to overpayments in rent and continued a rent reduction ordered in a prior decision in the amount of $15.00 per month due to broken and badly repaired bathroom floor tiles. On appeal, the landlord claims that the decision is inequitable because the unlawful rent increases were imposed by a prior owner; neither the tenant nor the current owner knew that the amounts were excessive prior to the instant proceeding; and, if proper rent increases that the owner was entitled to had been imposed, the tenant would have paid the same amount of rent.

    MSC: To deny the appeal. (Becker/Marshall: 3-2; Gr�²uber, Lightner dissenting)

    C. 1900 Vallejo St. #104 T001-58A; T001-80R

    The landlord’s appeal was filed one day late because the landlord’s attorney was traveling and unable to confer with his client. The tenant filed an appeal 16 days late because of new evidence recently come to light.

    MSC: To find good cause for the late filing of the appeals. (Becker/Marshall: 5-0)

    The tenant’s petition alleging decreased housing services was granted, in part, and the landlord was found liable to the tenant in the amount of $1,025.00 due to peeling paint and clogged sink drains. The tenant’s failure to repair claim was denied as untimely and because the tenant failed to prove that the conditions constituted code violations. On appeal, the landlord contends that the $50 per month rent reduction for the condition of the paint is excessive because the area involved is small; and that good faith attempts were made to repair the sinks,�· which only backed up twice during the period in question. The tenant also appeals the denial of two of her claims due to insufficient evidence, providing documentation showing that two other tenants in the building complained of the same conditions.

    MSC: To deny both the landlord’s and tenant’s appeals. (Lightner/Gruber: 5-0)

    D. 328 Kirkham St. #2 T001-72R

    The tenants’ petition alleging a decrease in housing services was dismissed due to their failure to appear at the properly noticed hearing. On appeal, the tenants claim not to have received notice of the hearing, and attach the requisite Declaration of Non-Receipt of Notice of Hearing.

    MSC: To accept the appeal and remand the case for a new hearing.

    (Becker/Marshall: 5-0)

V. Public Hearing
    The Board commenced a Public Hearing on the issue of non-residential use of a unit at 6:40 p.m. Prior to proceeding, the Board passed the following motion:

    MSC: To recuse�" Commissioner Becker from consideration of this issue. (Marshall/Lightner: 5-0)

    Twelve individuals addressed the Board as follows below:

    -- Landlord Attorney Nancy Lenvin spoke in support of the proposal, stating that the increase in office rents has led to more residential units being used commercially, which exacerbates the housing crisis.

    -- Ted Gullickson from the Tenants’ Union said that Planning and Zoning should deal with illegal conversions, as the proposal will open a new loophole for eviction attempts. He questioned the use of the phrase "consistent residential use" because of situations where tenants go away for a while.

    -- Miguel Wooding from the Eviction Defense Collaborative said that he has been seeing more "pretext evictions" since the enactment of restrictions on owner-occupancy; he believes that it is disingenuous to say that the proposal helps tenants.

    -- Landlord Tommy Tang asked whether a building constructed in 1985 was� exempt from rent control.

    -- Landlord Sonia Ng explained that two families bought a building that they intended to occupy, but the tenants won’t move. She told the Board that "landlords are not the problem." She also requested that the Board provide translation services for the Chinese speakers in attendance.

    -- David Man followed up on Ms. Ng’s request for translation, stating that he only understood 50% of what was being said.

    -- Tenant Kate Ritchey expressed her belief that the proposal would discriminate against existing tenants who travel and have erratic schedules.

    -- Tenant Debra Sialana explained that she has an irregular schedule, and often travels for work. She asked that the language be "quantifiable, and not wide open."

    -- Janan New from the S.F. Apartment Association supported the "clarifying language", stating that housing units are being used for ot�Âher uses such as storage.

    -- Landlord Peter Lewis told the Board about a friend of his in New York who is quite affluent but retains his tenancy in a studio apartment that he uses exclusively as an office.

    -- J. B. Alejani said that he has a friend who is "proud" of the fact that he has two large rent controlled units, one of which he is using as an office.

    -- Attorney Steve Mac Donald stated that the "spirit" of the proposal was not problematic, but that the language was. He suggested that the Board add that there be "consistent non-residential use."

    After closing the Public Hearing at 7:05 p.m., the Commissioners discussed the issues raised. Commissioner Lightner explained that her proposal was not a move toward requiring that a rental unit be the tenant’s principal place of residence in order for there to be jurisdiction, and therefore did not address the problem of "pied a terres." Commissioner Marshall expressed concerns that �Ãthe proposal could provide an incentive to owners to rent commercially, and reward owners who were in violation of zoning laws with rent increases. Since the targeted situations were those where a tenant changed the use of the unit, such as moving out of the City but keeping one’s unit for office use only, the Board passed the following motion:

    MSC: To adopt new Rules and Regulations Subsection 1.17(i), which shall read as follows below:

    Section 1.17 Rental Units

    (new language underlined)

    "Rental Unit" means a residential dwelling unit, regardless of zoning or legal status, in the City and County of San Francisco and all housing services, privileges, furnishings (including parking facilities supplied in connection with the use or occupancy of such unit), which is made available by agreement for residential occupancy by a tenant in consideration of the payment of rent. The term does not include:

    (i) a residential unit, wherein at the inception of the tenancy there was residential use, there is no longer residential use and there is a commercial or other non-residential use. The presumption shall be that the initial use was residential unless proved otherwise by the tenant.

    (Gruber/Lightner: 3-2; Marshall, Moore dissenting)

    E. 650 Waller St. T001-75R

    The tenant’s petition alleging substantial decreases in housing services was dismissed due to his failure to appear at the continued hearing, his request for postponement having been denied. On appeal, the tenant maintains that: the hearing should not have been re-set without express confirmation of acceptance of the date from both parties; there was inadequate time to respond to the proposed date for the continued hearing; and dismissal of all claims with prejudice constitutes a serious inequity under the circumstances.

    MSC: To recuse Commissioners Lightner and Becker from consi�Æderation of this appeal. (Wasserman/Marshall: 5-0)

    MSC: To accept the appeal and remand the case to the same hearing officer for a continued hearing; no further postponements will be granted to the tenant for any reason.

    (Wasserman/Murphy: 5-0)

    F. 531 Broderick St. T001-70R

    The tenants’ appeal was filed one day late because the tenants have a concurrent case at the Board of Permit Appeals which is requiring a great deal of preparation on their part; their lawyer was in New York at the time of issuance of the decision; and they were visiting relatives over the Passover and Easter holidays.

    MSC: To find good cause for the late filing of the appeal. (Marshall/Becker: 5-0)

    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 $900.00 for loss of use of a side yard and ancillary storage and off-site parking. However, the tenant’s�" claim that loss of access to a back gate connected with her off-site parking warranted a rent reduction was denied, because the hearing officer found that access to the gate was acquired after the commencement of the tenancy for no additional compensation. On appeal, the tenant asserts that: since the side yard was open space required by law, the value should be greater than $50.00 per month; the only remaining outdoor space, the deck, has been unsafe for several years; the loss of storage space and limitations on gardening commenced at an earlier date; and, use of the back gate is a service which "reasonably could have been expected", therefore warranting a rent reduction.

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

    F. 170 Duboce Ave. #8 T001-76R, 82R & -86R

    One tenant’s appeal was filed twenty-three days late without explanation.

    MSC: To find no good cause for the late filing of t�xhe appeal. (Wasserman/Marshall: 4-1; Becker dissenting)

    The landlord’s petition for certification of capital improvement costs for three of eleven units was granted, in part, resulting in a monthly passthrough in the amount of $109.71. On appeal, the tenants ask that an independent estimator verify that the seismic upgrade work was actually done.

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

    G. 553 Sanchez St. T001-56A

    The landlord’s petition for a rent increase based on increased operating expenses was granted on remand, resulting in a 7% base rent increase to the tenants in one unit. On further appeal, the landlord contends that the 7% cap on operating expenses should be waived in this case due to landlord hardship; and that the cap is unconstitutional as applied because he is being denied a fair return.

    MSC: To deny the appeal without prejudice to the landlord’s filing a petition based on fair return. (Becker/Marshall: 5-0)

    H. 1246 Jackson St. T001-57A; T001-77R

    The tenants’ petition alleging substantial decreases in housing services was granted, in part, and the landlords were found liable to the tenants in the amount of $880.00. On appeal, the landlords claim that the Rent Board has no jurisdiction over this matter since the tenants had vacated the unit by the time of the hearing in this matter. The tenants also appeal, claiming that the first notice to the landlords of the construction noise problem was in October, rather than November, and the rent reduction should therefore be for eleven rather than ten months.

    MSC: To deny both appeals. (Marshall/Becker: 5-0)

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

    A. Several letters regarding the issue of non-residential use of a unit, the subject of the Public Hearing.

    B A new staff roster.

    C. An article from the S. F. Examiner regarding petitions for capital improvement passthroughs filed by the landlords of two large apartment complexes wherein the requested rent increases are in the hundreds of dollars.

    D. Two "Customer Survey" forms showing the range of public opinion regarding the services provided by the agency.

VII. Director’s Report
    Executive Director Grubb informed the Commissioners that the Mayor’s Office has approved the hiring of the new counselor and hearing officer positions early, in order to help the agency address the backlog; and that the additional Senior Hearing Officer, Tim Lee, will come on board as of June 1st.
VIII. Calendar Items
    May 25, 1999 - NO MEETING

    June 1, 1999

    9 appeal considerations (1 rescheduled from 3/30/99; 1 from 4/20/99)

    New Business: Rules and Regulations Section 12.18 (Ellis)

IX. Adjournment
    President Wasserman adjourned the meeting at 8:45 p.m.
     

Last updated: 10/9/2009 11:26:13 AM