November 12, 1997

President Lightner called the meeting to order at 6:10 p.m.

Commissioners Present: Becker; Gruber; Justman; Lightner; Marshall; Moore; Mosser; Wasserman.

Commissioners not Present: Bierly.

Staff Present: Grubb; Wolf.

Commissioner Murphy appeared on the record at 6:30 p.m.

MSC: To approve the Minutes of October 28, 1997.

(Becker/Gruber: 5-0)

1. Tenant Jose Morales stated that he hoped the new neutral Commissioner would listen to both sides and, if unsure, remand cases back to the hearing officer.

2. Robert Pender of the Tenants’ Network informed all in attendance that Joan Williams of the Marina Cove Tenants’ Association passed away two weeks ago.

3. Tenant Monique Moro-Jang inquired as to when in the Agenda it was appropriate to relate personal anecdotes pertaining to material changes in the terms of a tenancy.

4. In response to a request from a member of the public, Executive Director Grubb introduced new voting neutral Commissioner Anthony Justman.

Public Hearing:

Proposed New Rules and Regulations Sections 12.20 and 12.21 Pertaining to Unilateral Changes to the Terms of Rental Agreements and Evictions Based on Breach of Such Materially Changed Terms

A Public Hearing regarding proposed changes to the Rules and Regulations concerning evictions for breaches of covenants that are unilaterally imposed by landlords commenced at 6:20 p.m. and concluded at 7:45 p.m. Eighteen tenants or tenant representatives and fourteen landlords or landlord representatives commented on proposed changes to the Rules and Regulations as follows below:

1. Tenant William Brady, President of the Alliance to Empower the Latino Community, asked what is wrong with honoring a lease, especially in a city of roommates.

2. Tenant Jose Morales stated that he is afraid of losing his home because of the issuance of a Rent Board decision granting his Proposition I landlord a rent increase based on comparable rents.

3. Paul Diaz of the Fox Plaza Tenants’ Association testified in support of the proposed new regulations.

4. Ted Gullickson from the Tenants’ Union addressed the current housing crisis, and stated his belief that there are more evictions than ever due, in part, to unilateral changes by landlords in the terms of existing tenancies. Mr. Gullickson supported the proposed language as simple and uncomplicated, and expressed a fear that it would be "watered down."

5. Rob Huddleston of the Professional Property Managers’ Association (PPMA) stated his belief that only a few unscrupulous landlords were taking advantage of the situation; and that the ability to make certain good and innocuous changes is essential for decent property management.

6. Eric Andresen, President of PPMA, stated that changes in the conditions of tenancies can be beneficial to other tenants in a building when a landlord is dealing with problem tenants; and the language of the proposed regulation is overly broad.

7. Landlord Robert Dewey complained that leases would have to get so complex in order to cover all contingencies that no tenant would be willing to sign.

8. Monique Moro-Jang informed the Board that she is a 32-year tenant who had previously always had permission to have pets, but she is now faced with eviction due to having two caged birds in her unit.

9. Tenant Robin Jacklih explained that, after three years, she is faced with a tremendous increase in the amount of her security deposit; and she does not feel that any existing legislation clearly gives her the right to say no.

10. Janan New, Executive Director of the San Francisco Apartment Association (SFAA), contended that the proposed Rules go too far in restricting responsible landlords’ management of their property.

11. Kate Gordon of the Housing Rights Committee told the Board that they are getting up to ten calls each day regarding eviction for breach of all types of covenants in rental agreements, and that tenants who fight such attempts run the risk of ruining their credit records.

12. Rebecca Graf, a VISTA volunteer in the Tenderloin, stated that tenants do not have the economic resources to go to court.

13. Mark Stout of the Tenants’ Convention Coalition stated that it is inequitable for one side to change the terms of a contract.

14. Robert Pender of the Tenants’ Network expressed his belief that the system is slanted in favor of landlords, and that tenants are afraid to fight.

15. Brook Turner from the Coalition for Better Housing said that the proposals go too far in that revolving tenancies constitute a real problem and that "pied a terres" contribute to the lack of vacancies in the City.

16. Tenants’ Attorney Scott Weaver said that the proposals are just an extension of Ordinance Section 37.9(a)(5); are the most cogent language in the Ordinance and Rules; and that people on both sides have to live with their deals.

17. Landlords’ Attorney Nancy Lenvin said that she believes proposed Section 12.20 has some major legal problems, and that proposed Section 12.21 is unnecessarily duplicative in that the Rent Board’s eviction procedures work well.

18. Jim Fabris, President of the Board of Realtors, stated his opinion that the Tenant Commissioners were seeking to derogate property rights, and asked that the proposals be tabled or referred to the Board of Supervisors.

19. Tim Carrico of TCO Property Management stated that abuses need to be dealt with, but that managing roommate situations is an ever-increasing problem.

20. Landlord Sarosh Kumana said that there are more unscrupulous and deceitful tenants than landlords.

21. Brad Hume from the Housing Rights Committee (HRC) contended that the current laws are a "hodgepodge", and that there is nothing clear to tell people.

22. Jean Chang from the HRC expressed her support for the proposals.

23. Matt Brown, Executive Director of St. Peter’s Housing Committee, stated "crises breed creativity" and contended that the Rent Board doesn’t have the resources to adjudicate evictions.

24. Landlord Jeffrey Leibovitz said that there are adequate rules on the books already, and that the issue is one of enforcement.

25. Proposition I landlord Nancy Tucker complained of having very aggressive tenants and said that she couldn’t understand "one word" of the proposals.

26. Miguel Wooding of the Tenants’ Union expressed his view that the proposals merely reflect existing law, but it would be advantageous to have things spelled out clearly and in one location.

27. Ira Dorter, a 15-year counselor at the Tenants’ Union, said that he has seen a change in the types of problems that tenants come in with and that the ability of landlords to effect unilateral changes in terms eviscerates the intent and purpose of the rent law.

28. Jude Alls from the Tenants’ Union said that she has won four out of five court battles.

29. A tenant named Jim said that he pays $2,600 for a two-bedroom apartment but the he has been refused permission to obtain a roommate.

30. Landlord Al Goodwin stated that rents are indeed outrageous, but that it is because of the laws of supply and demand; that Proposition I is driving the crisis; and that "every time you tighten the screws, landlords profit."

31. Proposition I landlord Dawn Bellach told the Board that she should have the right to live with whomever she chooses and that the passage of Proposition I has led to hundreds of units being taken off the rental market.

32. Landlord Irving Zaretsky claimed that the majority of problems are between tenants (lifestyle; smoking; exercise habits; etc.).

    After discussion of the public’s comments and review of the draft language, proposed new Rules and Regulations Section 12.20(a) was passed with minor modifications, as follows below:

    Section 12.20 Evictions under Section 37.9(a)(2)

    (a) Unilaterally Imposed Obligations and Covenants

    For purposes of an eviction under Section 37.9(a)(2) of the Ordinance, a landlord shall not endeavor to recover possession of a rental unit because of the tenant’s alleged violation of an obligation or covenant of the tenancy, if such obligation or covenant was unilaterally imposed by the landlord and not agreed to by the tenant and either was not included, or is not materially the same as an obligation or covenant in the rental agreement mutually agreed to by the parties. The foregoing shall not apply to: (1) changes in obligations or covenants that are not material; (2) changes in material obligations or covenants required by law or to protect the health, safety and quiet enjoyment of the occupants of the building or adjoining properties; or (3) material changes that have resulted in a substantial decrease in housing services with respect to garage, storage space, or access to common areas for which a commensurate rent reduction has been provided to the landlord; and (4) rent increases or other changes in the terms of a tenancy authorized under the Rent Ordinance and Rules and Regulations.

    MSC: To adopt proposed new Rules and Regulations Section 12.20(a), as amended. (Becker/Marshall: 4-1; Gruber dissenting)

    Discussion of proposed Rules Sections 12.20(b) and 12.21 was continued to the meeting on November 25th; Commissioner Becker will re-draft Section 12.21 to more closely mirror Ordinance Section 37.9(a)(5). Proposed Section 6.15 pertaining to changes in roommates and "Master Tenant" issues will also be discussed on that date.

In addition to correspondence concerning cases on the calendar, the Commissioners received a letter from Attorney Ivan Rothman concerning an unlawful detainer case he is currently defending. In a pre-trial ruling, Judge Quidachay of the Municipal Court issued an order precluding evidence of comparable vacancies available at any time other than during the 30-day notice period. In the event that he should have to file an appeal, Mr. Rothman requests that the Board consider filing an amicus brief. The Commissioners agreed to place this issue on the November 25th Board meeting calendar.

Executive Director Grubb informed the Commissioners that Citizens’ Complaint Officer Doris Charles has left the Rent Board to accept a position with the Office of the Public Guardian/Administrator.

D. Tenant Monique Moro-Jang thanked the Commissioners for their hard work.

E. Miguel Wooding of the Tenants’ Union reiterated the sentiments he expressed at the Public Hearing.

F. Attorney Nancy Lenvin stated her hope that the new Regulation would be understandable to the public.

G. Paul Diaz of the Fox Plaza Tenants’ Association informed the Board that two tenants in the building had committed suicide recently.

November 18, 1997 - NO MEETING

November 25, 1997 - 5:30 p.m.

6 appeal considerations

Old Business:

Continued Discussion of Proposed Additions to the Rules and Regulations Pertaining to Changes in Roommates and "Master Tenants"

December 2, 1997 - NO MEETING

President Lightner adjourned the meeting at 9:30 p.m.