October 05, 1999B>
MINUTES OF THE REGULAR MEETING
OF
THE SAN FRANCISCO RESIDENTIAL
RENT
STABILIZATION & ARBITRATION
BOARD,
Tuesday, October 5, 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 6:06 p.m.
II. Roll Call
Commissioners Present: Becker; Bierly; Gruber;
Mosser; Wasserman.
Commissioners not Present: Murphy.
Staff Present: Grubb; Wolf.
Commissioner Lightner appeared on the record at 6:12
p.m.; Commissioner Marshall arrived at the meeting at 6:14 p.m.; and Commissioner
Justman appeared at 6:35 p.m.
III. Approval of the Minutes
MSC: To approve the Minutes of September
21, 1999.
(Becker/Gruber: 4-0)
IV. Consideration of Appeals
A. 3751 Cesar Chavez (Army) St. T001-71A
(post. from 9/7/99)
The tenants petition alleging unlawful
increases in rent was granted, and the landlords were found liable to the
tenant in the amount of $16,560.00. The subject two-unit building had been
exempt from Rent Board jurisdiction until the death of one of the owners
in 1987. Since the owner died intestate, the Court set aside a Homestead
to his wife, the surviving spouse, and distributed a one-third interest
in the property to her, and a 1/3 interest to each of the couples
two daughters. Therefore, the property was no longer exempt at the time
that rent increases were given in 1987, 1989, and 1992. The current owners
took title to the property in 1998. On appeal, they assert that: the decision
is unjust, because the current owners relied on an Estoppel Certificate
completed by the tenants prior to their purchase of the property, and had
no reason not to believe that the property had been exempt due to owner-occupancy;
the tenants claim should be barred by the equitable defenses of laches
and estoppel; and two years of rent overpayments were made to the prior
owners, and should not have to be refunded by the new owners.
This matter was continued from the meetings on July
20th, August 17th and September 7th because the parties were attempting
to settle this matter themselves.
MSC: To accept the appeal and remand
the case to the hearing officer to hold a hearing and explore
whether the equitable defense of laches is applicable. The hearing
officer will take evidence on the allegations of wrongful eviction
attempts, and take any evidence of unclean hands on the part of
the landlords that are proved by the tenants into account. (Marshall/Becker:
3-2; Gruber, Lightner dissenting)
B. 3501 Fillmore St. U001-23R
The landlords petition for certification
of capital improvement costs to 17 of 27 units was granted, in part. One
tenant appeals the decision, asserting that: the office in the building
is used in the management of other properties; the fire extinguishers were
purchased for another building; the tenants are already paying for the cost
of painting the lobby; and the cost claimed for the new, upper roof is excessive.
MSC: To deny the appeal. (Gruber/Lightner:
5-0)
C. 1004-1/2 Dolores St. U001-24R
The landlords petition for certification
of capital improvement costs to 5 out of 6 units was granted, in part. One
tenant, who failed to appear at the hearing, appeals on the following grounds:
that the base rent amount for his unit is in error, since he is the on-site
property manager and his base rent is discounted for the services he provides;
that he does not benefit from the roof repairs that were effectuated since
his roof is not attached to the roof that was repaired; and that he has
suffered a reduction in housing services due to the work that was done.
MSC: To deny the appeal. (Gruber/Lightner:
5-0)
D. 261 - 23rd Ave. #2 U001-27R
The tenants petition alleging an unlawful
rent increase was denied because the hearing officer found that the tenant
had failed to prove that the amount the tenants rent had been reduced
for provision of managerial services was $50.00, rather than $20.00. Upon
appeal, the case was remanded to the hearing officer to examine a letter
in the file referring to the amount of the rent reduction. The Decision
of Hearing Officer on Remand affirmed the original Decision. The tenant
again appeals, claiming that the hearing officer was biased against him;
that his sworn testimony at the hearing constituted proof of the verbal
contract between the parties; and that the contract with the current property
managers had been severed and is no longer relevant.
MSC: To deny the appeal. (Gruber/Lightner:
4-1; Marshall dissenting)
E. 1418 Larkin St. #3 U001-25R
The landlords petition for 7% rent increases
based on increased operating expenses was granted to the tenants in 6 units.
One tenant appeals the decision, claiming not to have received the notice
of rent increase. The tenant therefore asserts that the effective date of
the rent increase in the Decision is incorrect.
MSC: To accept the appeal and remand
the case on the issue of the tenants alleged non-receipt
of the notice of rent increase; a hearing will be held only if
necessary. (Becker/Marshall: 5-0)
F. 656 OFarrell #401, 304 & 402 U001-29
thru -31R
The landlords petition seeking certification
of capital improvement costs to 14 of 16 units was granted, in part. The
tenants in three units appeal the decision on the grounds of financial hardship.
MSC: To accept the appeal of the tenants
in unit #401 and remand the case for a hearing on the tenants
claim of financial hardship. (Lightner/Gruber: 5-0)
MSC: To accept the appeal of the tenant
in unit #304 and remand the case for a hearing on the tenants
claim of financial hardship. (Becker/Gruber: 5-0)
MSC: To accept the appeal of the tenants
in unit #402 and remand the case for a hearing on the tenants
claim of financial hardship. (Becker/Gruber: 5-0)
G. 4410 - 17th St. U001-19A
The landlords appeal was filed almost
a month late because the landlord had been ill.
MSC: To find good cause for the late
filing of the appeal. (Lightner/Gruber: 5-0)
The tenants petition alleging substantial
decreases in housing services due to poor water quality and a defective
toilet were granted, and the landlord was found liable to the tenants in
the amount of $2,231.25. On appeal, the landlord claims the Decision is
in error in stating that the water was not tested from inside of the unit.
MSC: To accept the appeal and remand
the case for a hearing to consider the letters from the Public
Utilities Commission submitted by the landlord on appeal. (Becker/Marshall:
5-0)
H. 1817 Church St. U001-18A
The tenants petition alleging an unlawful
increase in rent because the landlord asked for an additional $50.00 due
to the tenants parking two, instead of one, vehicle in the garage
was granted. On appeal, the landlord maintains that the language in the
lease that does not prohibit the tenants from parking a second car in the
garage does not override the clause that provides that one parking space
only was included with rental of the premises.
MSC: To accept the appeal and remand
the case to the hearing officer on the record to issue a new decision
finding that the $50.00 charge for parking was not an unlawful
rent increase but, rather, a permissible increase in rent for
an additional housing service. (Gruber/Lightner: 3-2; Becker,
Marshall dissenting)
I. 3101 Laguna St. #302 U001-28R
The tenants petition alleging substantially
decreased housing services due to roof leaks over a 5-year period was granted,
and the landlord was found liable to the tenant in the amount of $2,075.00.
On appeal, the 80-year old tenant claims that the rent reduction granted
is inadequate compensation for the extreme inconvenience that she suffered
for six months out of every year since 1994; and that prior to the issuance
of the decision, the attorney for the landlord had offered a settlement
of three times the amount ordered in the Decision.
MSC: To deny the appeal on the decrease
in services claims only; no determination is made, however, as
to any damage claims (emotional, medical, etc.) that the tenant
may have and wish to pursue in another forum. (Lightner/Justman:
5-0)
V. Communications
In addition to correspondence concerning cases
on the calendar, the Commissioners received the following communications:
A. An Organizational Chart for the Office
of the Rent Board.
B. A current list of amendments to the Ordinance.
C. The office workload statistics for the
month of August, 1999.
D. An announcement of a Community Meeting
from the Mayors Office of Children, Youth and Families.
E. A letter to the Executive Director from
Thomas Ramm of the Small Property Owners of San Francisco.
VI. Directors Report
Executive Director Grubb informed the Board that
legislation sponsored by Supervisor Amos Brown requiring a study of the effects
of rent control in San Francisco after 20 years will be heard before the Finance
Committee on Wednesday, October 13th at 10:00 a.m.
VII. Old Business
Proposed Amendments to Rules and Regulations Section
6.15 in Conformity With Legislation Regarding Replacement Roommates Sponsored
by Supervisor Leno
Discussion of this issue was continued from the
meeting on September 27th. The Board approved language conforming the procedures
for obtaining consent to a replacement roommate in the event of an absolute
prohibition against subletting with the current procedures outlined in Rules
Section 6.15, with the exception of subsection (a). Commissioner Marshall
will re-draft the proposed language to continue to provide that the failure
of a landlord to disclose and get the tenants agreement to an absolute
prohibition against subletting or assignment will result in the landlord being
unable to evict pursuant to the breach of any such clause. Additionally, at
the request of the other Commissioners, Commissioner Marshall will separate
and make clear which provisions of Section 6.15 apply to situations where
there is an absolute prohibition against subletting, and which apply to situations
where there is not. Further discussion of this issue will be continued to
the meeting on October 19th.
VIII. Calendar Items
October 12, 1999 - NO MEETING
October 19, 1999
7 appeal considerations
6:30 Appeal Hearing: 1935 Franklin #503 (T001-70A)
(acpt. 8/3/99)
Old Business:
A. Costa-Hawkins
B. Rules and Regulations Section 6.15
(Leno)
C. Rules and Regulations Section 6.14
IX. Adjournment
President Wasserman adjourned the meeting at 8:06
p.m.