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March 04, 1997

March 04, 1997B>

 

 

 

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

Tuesday, March 4, 1997 at 6:00 p.m. at
25 Van Ness Avenue, Suite 70, Lower Level

  1. Call to Order

    Vice-President Wasserman called the meeting to order at 6:10 p.m.

  2. Roll Call

    Commissioners Present: Becker; Bierly; Gruber; Marshall; Moore; Mosser; Murphy; Wasserman.

    Commissioners not Present: Palma.

    Staff Present: Grubb; Wolf.

    Commissioner Lightner appeared on the record at 6:15 p.m.

  3. Approval of the Minutes

    MSC: To approve the Minutes of February 18, 1997 with the following correction: under Old Business, Section A, Codification of Artist Live/Work Policy: in the first paragraph of Section 1.17, Rental Units, line five, the words by agreement and residential shall also be underlined to indicate that they are new text.

    (Becker/Marshall: 5-0)

  4. Remarks from the Public

    Robert Pender distributed a resolution and petition adopted on February 19, 1997 by the Tenants’ Network urging State elected officials to restore the $60.00 Renters’ Tax Credit.

  5. Consideration of Appeals

    1. 2280 Pacific Ave. R001-42A

      Five tenant petitions alleging substantial decreases in housing services were granted, in part, and the landlord was found liable to the tenants in varying amounts due to: lack of elevator service in the twenty-four unit building for fifty-seven days; damp and damaged walls and ceilings in certain units due to leaks; an inoperable fire escape window; and a kitchen floor with loose tiles. On appeal, the landlord asserts that: the hearing officer erred as to the time period during which the elevator was malfunctioning; the rent reduction granted for the lack of elevator service was punitive and not compensatory; one of the landlord’s witnesses should have been considered an "expert"; a tenant who failed to appear at the hearings did not meet her burden of proof based on the hearsay testimony of her counsel; the tenants interfered with the landlord’s repair attempts and refused to provide access; that the hearing officer erred as to the date that the landlord was given notice as to the wall and ceiling problems in unit #704 and as to the length of time that construction was taking place in that unit; and that the fire escape window was repaired promptly after the landlord received notice of the problem.

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

    2. 2645 Polk St. #307 & 308 R001-85R & -86R

      The landlords’ petition for certification of capital improvement costs and increases based on increased operating expenses was granted. Two tenants appeal on the grounds that: the landlords willingly entered into an arms-length negotiation for the purchase of the building with knowledge as to the existing rent structure and the tenants should not have to finance such acquisition; the landlords should not be entitled to pass through the costs of capital improvement work performed by the prior landlord as the landlords have been compensated for these costs in the purchase price; and the prior owner managed the building itself and the tenants should not have to pay for the current owners’ management preferences.

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

    3. 665 Pine St. R001-43A &
      R001-87R thru -99R

      The landlord’s petition for certification of capital improvement costs to the tenants in 23 out of 40 units in the building was granted, in part; the landlord and thirteen tenants appeal the decision. The tenants appeal on the grounds that: painting of the garage only benefits those tenants who park at the garage level; much of the work is in the nature of repair and/or maintenance, and does not constitute capital improvements; removal of the underground storage tank does not benefit the tenants and the owner has already been compensated for this expense by the low purchase price of the building; and the old steam heat system was preferable to the new electric system, which was forced upon the tenants. On appeal, the landlord maintains that the hearing officer had no authority to certify the costs of installation of a new electrical heating system, but forestall the passthrough of those costs to the tenants until the steam heating system currently in place is no longer in use; he also alleges that there are ancillary benefits to the tenants in having a backup heating system in place, although he disputes that tenant "benefit" should be a consideration. Additionally, the landlord claims that costs for retiling of shower walls, reinstallation of a skylight and ancillary re-roofing work, and installation of electrical outlets, which were disallowed as repairs, are more properly considered capital improvements.

      MSC: To deny the landlord’s appeal. (Marshall/Becker: 4-1; Lightner dissenting)

      MSC: To deny the tenants’ appeals. (Wasserman/Gruber: 4-1; Marshall dissenting)

    4. 1534 Chesnut St. R001-44A

      The landlord’s petition for a rent increase based on comparables was granted, and an increase from $400.00 to $762.17 for this two-bedroom unit in the Marina district was found to be justified. Both parties appealed the decision and the case was remanded on the issue of comparables. In her Decision on Remand, the hearing officer denies the petition based on the landlord’s failure to meet the requisite burden of proof. The landlord appeals the remand decision on the grounds that: the hearing officer had a conflict of interest in that she was acquainted with the tenant appellee; the requirements of Rules Section 6.11(a) are impossible to meet in cases such as this, with a 24-year tenancy; the landlord has been denied due process in that the tenant’s evidence consisted of hearsay which prevented the landlord from direct and cross-examination of witnesses; and the decision is confiscatory in that it prevents the landlord from obtaining a fair and adequate rent.

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

    5. 1278 - 19th Ave. R001-45A

      The tenants’ petition alleging substantial decreases in housing services and unlawful rent increases was granted, and the landlords were found liable to the tenants in the amount of $3,035.00 based on habitability problems in the subject unit and $771.78 due to rent overpayments. On appeal, the landlord provided a copy of a Notice from DBI showing that the conditions had been abated. The appeal was accepted and the case was remanded in order to determine the appropriate termination date for the rent reductions. In the Decision on Remand, the hearing officer upholds the original decision, finding that the landlord failed to comply with the conditions specified in that decision in order for the rent reductions to be discontinued. The landlord again appeals, asserting that the tenants had failed to provide notice of the problems in the unit; that the conditions were remedied immediately upon notification from the Department of Building Inspection; and that the hearing officer exhibited bias in favor of the tenants.

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

    6. 685 Fell St. R001-46A

      Two tenant petitions alleging substantial decreases in housing services and rent overpayments were partially granted. The landlord in this case (Independent Housing, hereinafter referred to as IH) is a non-profit corporation which subleases, arranges and operates shared living situations; some ancillary social services are also provided. In addition to the monthly rent forwarded to the owner of the property, IH charges a $35.00 monthly "management fee" which is added to each tenant’s base rent. The hearing officer determined that the collection of this fee constituted a violation of Ordinance Section 37.3(c) of the Ordinance, in that IH was receiving more rent than the amount being forwarded to the owner. On appeal, IH asserts that: the $35.00 charge is a fee for services, and does not constitute rent; Ordinance Section 37.3(c) is inapplicable since IH is not a tenant which resides at the premises; and the tenants’ base rents have been found to be lawful in a prior Rent Board decision.

      MSC: To recuse Commissioners Becker and Marshall from consideration of this appeal. (Murphy/Wasserman: 5-0)

      MSC: To accept the appeal and remand the case to the hearing officer on the record to overturn the portion of the decision determining rent overpayments since Independent Housing is not a "tenant" as defined in Ordinance Section 37.2(r) and, therefore, Section 37.3 (c) is inapplicable; to uphold the decision in all other respects. (Wasserman/Gruber: 4-1; Moore dissenting)

  6. Communications

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

    1. A letter from Gordon Park-Li, Clerk-Administrator of the Muncipal Court, soliciting input on the possible implementation of the pretrial rent deposit pilot program pursuant to Section 1167.2 of the Code of Civil Procedure.

    2. A letter from Joan Carter complaining of what she perceived as rude or indifferent treatment when she phoned the office for information.

    3. A Memorandum from the Senior Hearing Officer regarding the office workload statistics for the month of January 1997. The statistical reports now include a detailed breakdown of arbitration and mediation results, and additional information concerning the issuance of decisions, agreements and dismissals.

    4. A new Form 700 (Statement of Economic Interests).

  7. Director’s Report

    Executive Director Joe Grubb informed the Commissioners that their economic interest statements are due in the Ethics Commission Office by April 1st. He also provided them with a new copy of the Rent Board’s "Information to Go" script.

  8. Consideration of Allegation of Wrongful Eviction
    2280 Pacific Ave. Q003-50E

    Pursuant to the DBI Notice of Violation and Director’s Hearing, repair work was ordered to commence on the tenant’s unit which necessitated the removal of the living room ceiling. The tenant’s health problems prevented him from residing in the unit during the period of ceiling removal, because the unit was filled with dust and debris. The tenant contended that the landlord should have served him a Notice to Vacate in compliance with the requirements of Ordinance Section 37.9(a)(11); that the landlord should have obtained the proper permits prior to commencement of the work; and that he was constructively evicted from the unit. The hearing officer agreed with the tenant’s claim that, at least from the time that the ceiling was removed, the unit was uninhabitable and the landlord was obligated to effectuate a temporary eviction due to capital improvement work; and recommended that the Board send a strongly-worded letter to the landlord advising her or her legal rights and responsibilites.

    MSC: To accept the hearing officer’s recommendation and write an appropriately worded letter to the landlord.

    (Becker/Bierly: 5-0)

  9. Old Business

    The Board’s discussion of the issue of evictions pursuant to Ordinance Section 37.9(a)(10) was continued due to the information requested from the Deputy City Attorney not yet being available.

  10. New Business

    The Deputy Director provided the Commissioners with a report regarding pending litigation and it was agreed that Vice-President Wasserman would serve as a "Litigation Liason" with the Office of the City Attorney. Additionally, in the case of Susoeff v. Rent Board (Superior Court Case No. 984130), since there are no questions of public policy at issue, it was the consensus of the Board to allow the City’s interests to be represented by counsel for the Real Party in Interest landlord. However, Deputy City Attorney Amy Ackerman will be instructed to file a short brief with the Court, stating that the Board stands behind its decision in this case.

  11. Calendar Items

    March 11, 1997 - NO MEETING

    March 18, 1997

    7 appeal considerations

  12. Adjournment

    President Lightner adjourned the meeting at 8:15 p.m.

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