To view graphic version of this page, refresh this page (F5)

Skip to page body

August 18, 1998

August 18, 1998B>

 

 

 

MINUTES OF THE REGULAR MEETING OF
THE SAN FRANCISCO RESIDENTIAL RENT
STABILIZATION & ARBITRATION BOARD,

Tuesday, August 18, 1998 at 6:00 p.m. at
25 Van Ness Avenue, Suite 70, Lower Level

  1. Call to Order

    President Wasserman called the meeting to order at 6:14 p.m.

  2. Roll Call

      Commissioners Present:
        Becker; Bierly; Gruber; Lightner; Marshall; Mosser; Wasserman.
      Commissioners not Present:
        Justman.
      Staff Present:
        Grubb; Wolf.

    Commissioners Moore and Murphy appeared on the record at 6:18 p.m.

  3. Approval of the Minutes

      MSC: To approve the Minutes of July 21, 1998. (Gruber/Lightner: 5-0)

  4. Remarks from the Public

    1. Bob Plantholdt from the Sunshine Task Force stated his opinion that the Commission must record their meetings on audio tape and use microphones for the benefit of the hearing-impaired.

    2. Robert Pender of the Tenants’ Network informed the Board that Proposition G on the November ballot, which would restrict owner-occupancy evictions, has been endorsed by the San Francisco Labor Council and Democratic Central Committee.

    3. A landlord spoke in favor of amending the Rules and Regulations to allow tenants to pay more rent in exchange for permission to sublet when there is an absolute prohibition against subletting and assignment in the lease or rental agreement.

  5. Old Business

    1. Brown Act and Sunshine Ordinance Requirements Pertaining to "Remarks from the Public" Portion of the Agenda

      Deputy City Attorneys Claire Sylvia and Marie Blits appeared to discuss due process concerns in allowing parties to an appeal to comment on the merits of their case during the "Remarks from the Public" portion of the Agenda. However, since the Commissioners had not received a Confidential Memorandum prepared by the Office of the City Attorney, this item was continued to a future meeting.

  6. Consideration of Appeals

    1. 1213 B York St. - T001-01A
      (rescheduled from 8/4/98)

      The landlord’s Petition for Extension of Time to do Capital Improvement Work was denied because the hearing officer found that the landlord had acted in bad faith for the following reasons: the work done to the interior of the tenant’s unit had been completed prior to the request for additional time; the exterior work did not render the unit uninhabitable and two other units in the building were occupied while this work was being done; and the landlord protracted the period of the tenants’ continued displacement in order to sell the unit. On appeal, the landlord claims that the extreme weather brought on by El Nino hampered the construction; extensive framing damage necessitated the work being done from inside the unit; there was more damage to the building than originally anticipated; and the unit could not be considered habitable until the Department of Building Inspection had performed a Final Inspection, which could not have taken place until after the exterior work had been completed.

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

      Commissioners Moore and Marshall expressed their concerns regarding the course of conduct undertaken by the landlord in this case, and asked that staff report back to the Board at the next meeting regarding the advisability of a referral to the Office of the District Attorney.

    2. 1550 Bay St. - S001-93R thru S003-53R

      The landlord’s petition for rent increases based on increased operating expenses was granted. One tenant appeals the decision on the grounds that, since his tenancy commenced after ownership of the property changed, he should not be subject to the rent increase pursuant to Rules Section 6.10(a). In addition, sixty tenants appeal the decision, asserting that the "anti-speculation clause" {Rules Section 6.10(f)} is applicable to the facts of this case. The landlord had purchased the "unit" or building in 1987, but did not acquire the land until December of 1994. The hearing officer therefore found that since the most recent purchase of the "unit" did not occur within two years of the date of purchase of the unit by the seller of the unit to the current landlord, Rules Section 6.10(f) is inapplicable. The tenants argue that since the definition of "rental unit" in Ordinance Section 37.2(p) specifically includes "the land and appurtenant buildings thereto", the sale and acquisition of the land cannot be ignored, even though the landlord owned the building prior to the acquisition of the land.

      MSC: To recuse Commissioners Gruber and Murphy from consideration of these appeals. (Marshall/Becker: 5-0)

      Since the tenants had submitted a relevant submission on the afternoon of the meeting, to which the landlord’s attorney had not had a chance to respond, the Commissioners continued consideration of these appeals to the September 15th Board meeting.

    3. 4030 Cabrillo St. - T001-02A

      The tenants’ petition alleging substantial decreases in housing services was granted and the landlord was found liable to the tenants in the amount of $2,160.00 due to habitability defects on the premises. Additionally, rent overpayments in the amount of $560.70 were determined to be owing from the landlord to the tenant. The tenant’s claim that the landlord had failed to perform requested repairs was denied. On appeal, the landlord asserts that the tenants’ claim regarding the defective heater was not included in their petition; that repairs were effectuated in a timely manner; that the roof leak was minor in nature and did not seriously inconvenience the tenants in any way; and that the amounts granted are unwarranted and excessive.

      MSC: To accept the appeal and remand the case to the hearing officer on the record to delete the amount granted due to the defective heater, since the issue was not raised in the tenants’ petition. (Becker/Marshall: 5-0)

    4. 416 Lombard St. - T001-04A

      The tenant’s petition alleging substantial decreases in housing services was granted and the landlord was found liable to the tenant in the amount of $1,636.35 due to the loss of use of a roof deck and $5,600.00 due to revocation of the right to have a roommate. On appeal, the landlord asserts that: the language in the Rental Agreement prohibiting subletting is clear and unambiguous; the landlord did not waive her right to enforce the covenant prohibiting subletting and the Rental Agreement specifically provides that failure to enforce a term of the contract shall not constitute a waiver; the issuance of a notice pursuant to the provisions of Rules Section 6.14 does not constitute waiver on the part of the landlord; provisions of the Police and Housing Codes that deem restrictions on the number of occupants in a unit as contrary to public policy are inapplicable; the right to sublet is not a "housing service"; and, the tenant never had a legal right to use the roof platform and therefore did not suffer the loss of a housing service upon its legal removal.

      MSC: To deny the landlord’s appeal on the issue of the rent reductions granted due to revocation of the right to sublet but find that, under the facts of this case, no permanent waiver of the no subletting and assignment clause has been established, and the landlord has the right to reassert the no subletting clause if and when there is a new occupant on the premises, at the commencement of that tenancy. (Wasserman/Becker: 4-1; Gruber dissenting)

      MSC: To accept the appeal and remand the case for a new hearing to find out what representations regarding the use of the roof deck were made to the original tenant in the unit. (Becker/Lightner: 5-0)

    5. 43301/2 - 17th St. - T001-03A

      The tenant’s petition alleging decreased housing services, the landlord’s failure to repair, improper rent increases and incorrect calculation of a PG&E passthrough was granted, in part, and the landlord was found liable to the tenant in the amount of $1,580.00 due to habitability problems on the premises. Additionally, rent overpayments in the amount of $608.00 were determined, although no refund was ordered since the tenant had failed to pay rent since July of 1997. On appeal, the landlord claims that: the tenant is not entitled to occupy the premises; she has attempted to effectuate repairs, but the tenant has failed to cooperate; the tenant constitutes a nuisance and a danger to the other tenants; and the dates and amounts granted for rent reductions are incorrect.

      MSC: To deny the appeal. (Becker/Marshall: 5-0)

    6. 150 Julian Ave. - T001-01A

      The tenant’s petition alleging an unlawful increase in rent from $540.00 to $807.30 was denied because the hearing officer found that the tenant had failed to meet her burden of proving that the amount was in excess of allowable annual and banked increases available to the landlord. On appeal, the tenant claims that the sellers could not have told the landlord that increases had not been imposed between 1982 and 1989, because they were not the owners of the property at that time; that the resident manager for the building at that time could confirm that increases had been imposed, but illness has prevented him from doing so; and that it is not possible to obtain copies of money orders from so long ago.

      Since there was a question as to the calculation of allowable banking in the Decision of Hearing Officer, this case was continued to the meeting on September 15th in order to obtain clarification from staff.

  7. Communications

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

    1. The office workload statistics for the month of June.

    2. A proposed amendment to Rules and Regulations Section 7.12(b) authored by Commissioner Marshall.

    3. An Order in the case of Coronado v. City and County of San Francisco (U.S. District Court Case No. C-98-2564-VRW) denying plaintiff’s claim that the Rent Board had violated his constitutional rights.

    4. A letter to Deputy City Attorney Susan Frankel from Fair Housing Coordinator Don Hesse regarding a possible conflict between Ordinance Section 123-93 prohibiting discrimination against families with children and recently enacted Rules and Regulations Section 6.15.

    5. An updated list of amendments to the Rent Ordinance.

  8. Director’s Report

    Executive Director Grubb informed the Commissioners that amendments to the Rent Ordinance restricting owner move-in evictions introduced by Supervisor Bierman will be heard before the Housing and Neighborhood Services Committee on Thursday, August 20th at 10:00 a.m. He also reminded them that Rent Board jurisdiction over certain aspects of Section 8 and other tenant-based rental assistance programs will commence on August 30th.

  9. Old Business (cont.)

    1. Rules and Regulations Section 7.12(b) (The "6-Month Rule")

      The Commissioners discussed a proposed amendment to the Rules and Regulations authored by Commissioner Marshall which would clarify that, if a tenant moved into a unit within 6 months of the commencement of capital improvement work as well as during the period of the construction, they would not be subject to a capital improvement passthrough based on the cost of such work. Commissioner Marshall will work on language to define the scope of work, and this issue will be calendared for continued discussion at the next Board meeting.

    2. Rent Increases When There is an Enforceable Absolute Prohibition Against Subletting

      The Board discussed proposed Rules and Regulations Section 6.16, authored by Commissioner Lightner in response to an issue brought to the Board by landlord Allan Chase and a tenant in one of his units at the meeting on July 21st. The issue is the tenant’s desire to pay an increased rent in order to be granted permission to get a roommate, without the landlord running the risk of being held liable for rent overpayments in the future due to the null and void provisions of Rent Ordinance Section 37.3(b)(5). After discussion, the Commissioners agreed to ask for an opinion from the Office of the City Attorney regarding whether allowing rent increases under such circumstances would be a valid exercise of the Board’s authority, or would require an Ordinance change; and whether the voluntary termination of a tenancy by a tenant and creation of a new tenancy at a higher rent would constitute an unlawful rent increase.

  10. Remarks from the Public (cont.)

    1. A landlord stated that he is now afraid to allow his tenants to obtain roommates because it will be construed as a permanent waiver of the absolute prohibition against subletting and assignment in his lease.

    2. Landlord Allen Chase expressed his disappointment that the Board failed to act on Commissioner Lightner’s proposal, and stated that the tenant at that unit will have to move. He believes that, in a regulatory environment with limited opportunities to raise the rent, he is obligated to take advantage of an opportunity to maximize his profits.

    3. Robert Pender of the Tenants’ Network stated that it was strange to hear landlords arguing on the basis of what’s good for tenants.

    4. A individual expressed his concern that there is more expertise regarding rent control on the Commission than in the City Attorney’s Office.

    5. A landlord chastised the Board for not providing answers to the problem, which be believes the Commissioners owe the public.

    6. A landlord stated that he can’t understand the problem with enforcing a contract, and that the Commission "knocks landlords down."

  11. New Business

    Commissioner Moore asked that a letter be sent to the family of a woman who was a neighborhood activist, and who was recently robbed and killed in the Western Addition. Mr. Grubb will prepare a condolence letter on behalf of the Board.

  12. Calendar Items

      August 25, 1998 - NO MEETING

      September 1, 1998
      9 appeal considerations
      Old Business:

        A. 1213 B York St. (T001-01A): Report from Staff
        B. "Remarks from the Public" Portion of the Agenda
        C. Rules and Regulations Section 7.12(b) (The "6-Month Rule")

      September 8, 1998 - NO MEETING

  13. Adjournment

    President Wasserman adjourned the meeting at 9:55 p.m.

Last updated: 10/9/2009 11:26:14 AM