July 1, 2003
MINUTES OF THE REGULAR MEETING OF
THE SAN FRANCISCO RESIDENTIAL RENT
STABILIZATION & ARBITRATION BOARD,
Tuesday, July 1, 2003 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 6:11 p.m.
II. Roll Call
Commissioners Present: Becker; Lightner; Marshall; Mosbrucker; Mosser; Wasserman.
Commissioners not Present: Gruber; Murphy.
Staff Present: Grubb; Wolf.
Commissioner Justman appeared on the record at 6:25 p.m.
III. Approval of the Minutes
MSC: To approve the Minutes of June 17, 2003.
(Becker/Marshall: 5-0)
IV. Consideration of Appeals
A. 1906 B Folsom St. AT030088
(cont. from 6/17/03)
The tenant’s petition alleging decreased housing services and the landlord’s failure to repair was dismissed due to his failure to appear at the properly noticed hearing. On appeal, the tenant alleges not to have received the notice of hearing, and attaches the requisite Declaration of Non-Receipt of Notice of Hearing.
MSC: To accept the appeal and remand the case for a new hearing; should the tenant fail to appear again, absent extraordinary circumstances, no further hearings will be granted. (Becker/Marshall: 3-2; Lightner, Mosser dissenting)
B. 66 Hazelwood AT030089
The landlord’s petition for certification of the costs of a new roof to two units was granted. The tenant in one unit appeals the decision on the grounds of financial hardship.
MSC: To accept the appeal and remand the case for a hearing on the tenant’s claim of financial hardship. (Becker/Marshall: 5-0)
C. 150 Franklin, Apt. 405 & 203 AT030087 & -90
The tenants’ appeals were filed 3 months late because the Minute Order that was issued did not contain language pertaining to hardship appeals.
MSC: To find good cause for the late filing of the appeals. (Becker/Justman: 5-0)
The landlord’s petition for certification of capital improvement costs to 17 of 39 units was granted pursuant to a Minute Order. Two tenants appeal the Minute Order on the grounds of financial hardship.
MSC: To accept the appeals of the tenants in unit #405 and 203 schedule the cases for a hearing on the tenants’ claim of financial hardship. (Marshall/Mosser: 5-0)
D. 427 Stockton St. #709 AT030083
The tenant’s petition alleging decreased housing services was denied because the tenant failed to meet his burden of proof. The tenant claimed that the previous landlord paid the tenant’s PG&E bills, but that the current landlord did not do so. On appeal, the tenant maintains that: the Administrative Law Judge does not have the power to ignore the clause in his lease that stipulates that the landlord is responsible for payment of PG&E bills; any change to the lease must be in a writing signed by both parties; the tenant never intended to give up his rights under the lease; and he has provided proof that he now pays his own PG&E bills.
MSC: To deny the appeal. (Mosser/Lightner: 3-2; Becker,
Marshall dissenting)
E. 1181 Clay St. AL030085
The landlord’s petition for certification of capital improvement costs to 4 of 7 units was granted, in part. However, rent overcharges were determined to be owing from the landlords to the tenants due to previous capital improvement passthroughs that were not discontinued at the expiration of the amortization periods. On appeal, the landlords claim that they were not given credit for accumulated capital improvement amounts that were carried forward and imposed in subsequent years.
MSC: To accept the appeal and remand the case to the Administrative Law Judge on the issue of the proper discontinuation dates for capital improvement passthroughs previously imposed and to adjust overcharges determined to be owing from the landlord to the tenants if necessary. A hearing will be held only if necessary. (Mosser/Justman: 5-0)
F. 1403-19 Jackson/1459-69 Hyde AL030092
The landlord’s petition for certification of capital improvement costs to 4 of 13 units was granted, in part. The amount certified for certain items was limited to the amount requested by the landlord in the petition. On appeal, the landlord asks to be allowed to amend the petition in order to correct calculation errors and have the full cost of the work certified.
MSC: To accept the appeal and remand the case in order to allow the landlord to amend the petition and have the full cost of allowed items certified; a hearing will be held only if necessary. (Lightner/Mosser: 5-0)
G. 1402 Ortega St. AL030091
The tenant’s petition alleging an unlawful rent increase was granted and the landlord was found liable to the tenant in the amount of $23,461.85. The landlord’s appeal was accepted and the case was remanded to determine which portion of the overpayments were paid by the Master Tenant and which amounts were paid by subtenants and for how long, and to order refunds accordingly. The Master Tenant provided the names and addresses of three former subtenants who were given notice of their entitlement to a share of the overpayments, but failed to pursue their claims. Therefore, the Administrative Law Judge found that the Master Tenant’s collection of excess rent from the subtenants is not a defense to the landlord’s obligation to refund the excess rent to the Master Tenant and the original ruling was upheld. The landlord again appeals, asserting that: the unlawful rent increase resulted from a new lease which established a new tenancy with adequate consideration to justify the new rent; the Master Tenant is the only one with knowledge as to his subtenants, and he should not benefit from inadequate record-keeping; the subtenants could file a future claim against the landlord; and the excess amounts should be held in a constructive trust for the subtenants.
MSC: To deny the appeal. (Justman/Becker: 5-0)
H. 1467 – 7th Ave. AL030093
The landlord’s appeal was filed one month late because the landlord sent in a letter to the Administrative Law Judge, which she thought constituted an appeal.
MSC: To find good cause for the late filing of the appeal. (Becker/Lightner: 5-0)
The tenant’s petition alleging decreased housing services due to the loss of a parking space was granted and the landlord was found liable to the tenant in the amount of $6,000.00. The landlord failed to appear at the hearing. On appeal, the landlord claims not to have received the Notice of Hearing because the tenant furnished the Board with an incorrect address.
MSC: To accept the appeal and remand the case for a new hearing. (Lightner/Mosser: 5-0)
I. 3648 Irving St. AT030094
The landlords’ petition for rent increases based on increased operating expenses was granted, resulting in 7% base rent increases to the tenants in three units. The tenant in one unit appeals the decision, asserting that: the tenants should not be responsible for the cost of repairs made to vacant apartments; any repairs made were necessary for the safety of the tenants; property tax and debt service costs are the owner’s responsibility; and there are repair and maintenance issues in the building.
MSC: To deny the appeal. (Lightner/Mosser: 5-0)
V. Director’s Report
Executive Director Grubb informed the Board that Supervisor Daly’s legislation proposing that the Rent Board be elected rather than appointed was heard before the Rules Committee on Monday, June 30th. The Committee sent the proposal on to the full Board with a recommendation not to submit as a ballot measure. The Board of Supervisors will consider the legislation on the 15th of July. Mr. Grubb also told the Commissioners that new security measures, including a recording camera and audio equipment, are being installed in the office.
VI. Remarks from the Public
Gary Briggs expressed his opinion that an elected Rent Board is a bad idea, because there is a “good balance” the way it is now.
VII. Calendar Items
July 8, 2003- NO MEETING
July 15, 2003
10 appeal considerations
Old Business: Bullard v. Rent Board (Superior Court Case No. 319025)
VIII. Adjournment
President Wasserman adjourned the meeting at 7:26 p.m.