August 19, 2008

Commissioners Present: Beard; Crow; Gruber; Hurley; Mosbrucker; Mosser.

Commissioners not Present: Henderson; Justman; Marshall; Murphy.

Staff Present: Gartzman; Wolf.

Commissioner Crow was welcomed to his first Board meeting.

MSC: To approve the Minutes of July 15, 2008.

(Hurley/Mosbrucker: 5-0)

A. Golden Gateway tenant Brian Browne spoke in support of Regina Macias' appeal (AT080077). Mr. Browne said that he does not understand Rules ß6.16 because he was promised utilities in his rent when he moved in. The new landlord took over in 1990 or 1991 and passed through seismic work in 2002. The landlord's attorney said that it would be confiscatory if Golden Gateway couldn't go back to a 1980 base year for their utility passthrough, but Mr. Browne believes that they are the only landlord in the City who deducts the 1980 bill from the current bill. Mr. Browne feels that a hearing should be held to look at the landlord's surveys because he has received utility passthroughs in excess of 14% of his rent.

B. Tenant Regina Macias of 550 Battery #2004 told the Board that the Golden Gateway complex was originally HUD housing that was affordable for working individuals. Ms. Macias believes that the seismic upgrade costs should have been part of the purchase price for the building. She said the decision uses an incorrect ownership date; the 1983 base year is unfair and not indexed for inflation; utilities are included in her lease; and long-term renters are being overcharged and pushed out.

C. Golden Gateway tenant Joseph Jedekin spoke in support of the Macias appeal. He said that the issue is contractual; the landlord shouldn't be permitted to go back to 1980 for passthroughs; and the landlord should be held to a 1991 base year, which is when they became owners of the property.

D. Golden Gateway tenant Robert Coleman voiced his enthusiasm for Commissioner Crow's appointment to the Board, commending him for his high standards and ethics. Mr. Coleman also spoke in support of the Macias appeal. He said that the Regulation seeks to discourage exaggerated results, but that it is impossible to tell without running the numbers. Mr. Coleman told the Board that the landlord wasn't compelled to submit the underlying documents, and that the result of this appeal consideration will affect many tenants besides the appellant.

E. Golden Gateway tenant Ernestine Weiss said that she has lived in the complex since 1987. Ms. Weiss believes that this landlord is the "worst criminal thief in the history of San Francisco." She expressed her concerns regarding "hotelization" and told the Board that there is no accountability; her contract provides for utilities; and the landlord shouldn't be able to go back for years prior to their ownership. Ms. Weiss concluded by reminding the Board that they are here to "do justice."

F. Tenant appellant Valerie Howard Holman of 51247 – 3^rd St. (AT080075) told the Board that her landlord doesn't do anything. Ms. Holman's train was held up in the tunnel and she missed her hearing. She apologized to the Board, but explained that she was "fighting for her rights." Ms. Holman feels it is unfair to pay rent but get nothing.

The landlord's petition for rent increases to 8 of 12 units was granted. One tenant appeals the decision on the grounds of financial hardship.

The landlord's petition for utility passthroughs for 5 of 794 units was granted. The tenant in one unit appeals, alleging that: the date the current landlords acquired ownership of the property is incorrectly stated in the decision; the present landlord has no knowledge of events in the base year; and this inaccuracy calls into question the veracity of the entire petition.

The tenant's petitions were dismissed due to her failure to appear at the properly noticed hearing. On appeal, the tenant claims that there was a delay on public transportation; that she is suffering from depression; and that her brother was recently deceased.

The tenant filed a petition requesting a determination of his lawful rent. The Administrative Law Judge found that there had been no unlawful rent increases, as the landlord's "accounting" of water and garbage charges was not a demand for payment. The tenant appeals the decision, asserting that: the "accounting" is actually a bill for water and garbage charges, which were included in his lease; and these charges constitute an unlawful rent increase.

MSC: To accept the appeal and remand the case to the Administrative Law Judge for a determination as to whether the water and garbage charges constitute an unlawful increase in rent; a hearing will be held only if necessary.

(Mosbrucker/Crow: 5-0)

The tenant's appeal was filed one day after the extension he had been granted expired.

The landlord's petition for approval of utility passthroughs for 7 of 12 units was granted. One tenant appeals on the grounds that: a hearing was not held in the case; the landlord misrepresented the facts concerning unnecessary increases in lighting and heating costs; if the new lighting was really cost-effective, the tenants should not have to pay utility passthroughs; and the gas heaters do not work well.

The landlord's petition for certification of capital improvement costs for 13 of 14 units was granted. The tenants in two units appeal the decision on the grounds of financial hardship.

The tenant's petition alleging decreased housing services was granted and the landlord was found liable to the tenant in the amount of $2,090.00. The landlord failed to appear at the properly noticed hearing and provides documentation that he was ill on the day of the hearing.

The tenant's petition alleging decreased housing services was granted and the landlord was found liable to the tenant in the amount of $266.50 due to the presence of rats in the back yard. On appeal, the landlord claims that the rent reduction of $50.00 per month is excessive and disproportionate to the actual loss of services.

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

A. A Pending Litigation Status Report from Senior Administrative Law Judge Tim Lee.

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

C. Several newspaper articles from the S.F. Chronicle, S.F. Apartment Magazine, BeyondChron and S.F. Weekly.

D. A notification of the new 60-day notice requirement for foreclosure evictions.

Executive Director Wolf informed the Board as follows:

A. The outstanding billing issue with the Office of the City Attorney has been resolved.

B. The rental unit fee for fiscal year 2008-09 will be $29.00.

C. As a follow-up to a concern voiced by Commissioner Hurley, a search of the database revealed that approximately 14 tenant petitions per year are dismissed and subsequently appealed. It therefore does not seem like a good use of staff resources to contact tenants and remind them of their upcoming hearing dates.

This issue was continued to the next meeting due to the absence of Commissioners Marshall and Murphy.

President Gruber adjourned the meeting at 7:26 p.m.