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

Skip to page body

December 2, 2008

December 2, 2008

MINUTES OF THE REGULAR MEETING OF

THE SAN FRANCISCO RESIDENTIAL RENT

STABILIZATION & ARBITRATION BOARD,

Tuesday, December 2, 2008 at 6:00 p.m. at

25 Van Ness Avenue, Suite 70, Lower Level

I. Call to Order

President Gruber called the meeting to order at 6:00 p.m.

II. Roll Call

Commissioners Present: Beard; Crow; Gruber; Henderson; Hurley; Justman; Mosbrucker.

Staff Present: Gartzman; Lee; Wolf.

Commissioner Mosser appeared on the record at 6:05 p.m.; Commissioner Marshall arrived at the meeting at 6:09 p.m.; and Commissioner Murphy appeared at 6:11 p.m.

III. Approval of the Minutes

MSC: To approve the Minutes of November 18, 2008.

(Hurley/Henderson: 5-0)

IV. Remarks from the Public

A. Andrew Zachs, Attorney for the landlord at 151 – 26th Ave. (AL080113), told the Board that if there was ever a case for 1.21 exemption from the rent increase limitations of the Ordinance, this is it. Mr. Zachs said that the tenant actively litigated the right to convert a life estate on a property in Hawaii to a fee simple interest, which requires that it be a principal place of residence. The tenant also had a multi-million dollar home in San Francisco with a Homeowner's Exemption. Mr. Zachs believes that the decision that this tenant is a  Tenant in Occupancy constitutes an injustice which doesn't further the policies of the Rent Ordinance.

B. Master Tenant Dmitry Shkipin submitted a letter in which he pointed out that Ordinance Section 37.9(b) allows a Master Tenant to evict a subtenant without a Just Cause reason, while Rules Section 6.15(f)(1) requires that this be disclosed to the subtenant prior to commencement of the tenancy. Mr. Shkipin feels that this constitutes a contradiction that should be rectified.

C. Tenant Gerald Greene of 520-1/2 Visitacion Avenue (AT080117) told the Board that the landlord takes advantage of a disabled tenant at the property, Maggie Brown, who is a victim of two strokes. Mr. Greene said that the tenants receive  no care and disrespect from the landlord, and their bedroom is not up to code.

D. Tenant Maggie Brown of 520-1/2 Visitacion Avenue said that the landlord takes advantage of her, bothers her all the time and calls the police, which she thinks is wrong.

E. The landlord at 520-1/2 Visitacion, Willie Dotson, asked for clarification regarding whether the tenants were appealing the decision in the current arbitration, or a prior mediated agreement.

F. Landlord Jasper Williams of 1620 Grove St. (AL080114) said that the Decision of the Administrative Law Judge (ALJ) is  entirely wrong. Mr. Williams told the Board that the original tenants at the property are long gone, and roommates come and go. He alleged that he was told by a Commissioner long ago that when his original tenant moved out, he could terminate the tenancy. He asked that the Board try and look at things from a landlord's perspective.

V. Consideration of Appeals

A. 1633 – 11th Ave. AL080115

The tenant's petition alleging decreased housing services and an unlawful rent increase was granted, in part, and the landlord was found liable to the tenant in the amount of $920.00 for rent overpayments and $30.00 per month due to a defective stove. The landlord appeals on the grounds that: the landlord erred and gave incorrect information at the hearing regarding the setting of the initial base rent for the unit, which was reduced due to the tenant's financial circumstances; and the tenant now has two additional tenants in the unit with no increase in rent.

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

B. 520-1/2 Visitacion Ave. AT080117

The tenant's petition alleging decreased housing services was denied because the ALJ found that the parties had entered into a mediated agreement regarding the claim of a windowless bedroom, and nothing has changed since the date of that agreement. The tenants appeal, claiming that the landlord is not upholding the terms of the agreement and the ALJ refused to consider evidence supporting that contention.

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

C. 1620 Grove St. AL080114

The tenant's petition alleging an unlawful rent increase from $2,075.00 to $2,975.00 was granted because the ALJ found that the tenant is a tenant, and not a subtenant or assignee, and no ยง6.14 notice was served on the tenant by the landlord. The landlord appeals, arguing that: there is no evidence in the record that the landlord failed to serve a 6.14 notice; the increase to $2,975.00 was actually a conditional offer to rent the premises, over which the Rent Board has no jurisdiction; the landlord has been deprived of due process; a tenancy was not created by the landlord's acceptance of rent and communications with the tenant, because the tenant breached an agreement to move at the end of a year's time; the tenant is an assignee and therefore the landlord is entitled to set the rent at market; the ALJ did not follow a prior decision of the Board; the tenants have refused to provide the landlord with personal or credit information; and there are other factual errors in the Decision.

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

D. 151 – 26th Ave. AL080113

The landlord filed a petition seeking a determination pursuant to Rules Sections 1.21 and 6.14. The ALJ found that no rent increase is warranted because one member of the tenant's family, the husband, still occupies the subject unit as his principal place of residence, while the other family members principally reside in Hawaii. On appeal, the landlord argues that: the ALJ exceeded his authority in making a determination under Costa-Hawkins, which was not requested by the landlord; a single family cannot have separate primary residences; the tenant family has had very little contact with San Francisco until very recently, including voting in Hawaii; Homeowner's Exemptions on two separate properties have been taken by the tenants during the relevant time period; the tenant's vehicle is registered in California and there are utility charges at the subject unit because he is frequently here on business; the tenants failed to provide relevant tax information; and the tenants provided inconsistent testimony at the hearing.

MSC: To accept the appeal and remand the case to the Administrative Law Judge to allow the tenant to produce evidence regarding tax returns and any relevant schedules from 2004 forward and to delete the Costa-Hawkins determination; a hearing will be held only if necessary. (Mosbrucker/Marshall: 4-1; Gruber dissenting)

E. 1400 McAllister #12 AL080112

This case was settled and the appeal withdrawn prior to the meeting.

F. 1142 Jackson #4 AT080116

The tenant's petition alleging decreased housing services was granted, in part, and the landlord was found liable to the tenant in the amount of $700.00 due to lack of heat in the unit. The ALJ found that a claim regarding construction noise in the building was barred by the Golden Gateway decision. The tenant appeals, asserting that: the landlord did more than reasonably necessary repair and maintenance work, as the unit above the tenant's was completely demolished and remodeled; the tenant was deprived of quiet enjoyment of the unit for a long period of time; the rent reduction for the lack of heat should go back longer, as the landlord should have been aware that the tenants were without heat; and another unit in the building is in deplorable condition, but the tenant is afraid to complain.

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

VI. Communications

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

A. The Board received a copy of a letter from tenant Lawrence Berg to Attorney Ronald Schivo regarding the denial of his appeal in the case at 2893 – 24th St. #B (AT080099 & AT080110).

B. An article from the Marin Independent Journal about the owner of a Larkspur Landing apartment complex who is challenging internet free-speech laws in federal court to try to stop people from posting negative comments about the complex.

C. The office workload statistics for the month of October, 2008.

VII. Director's Report

Executive Director Wolf told the Commissioners that the annual allowable rent increase for the period 3/1/09 – 2/28/10 is 2.2%.

VIII. Old Business

Utility Passthrough Regulations 6.16 and 10.13

The Board continued their discussion of a draft proposal to change the methodology for calculation of utility passthroughs. Commissioner Murphy stated his opposition to the proposal because he believes there was a compromise four years ago and it is unfair to re-visit it now, and the hardship provision provides a safety valve for tenants who cannot afford it. Commissioner Murphy believes that any changes should look at the whole process, which is too onerous for landlords. Commissioner Mosbrucker said that the proposed methodology is simpler because it requires just one petition every five years, and a worksheet in the intervening years. Commission Marshall reiterated her unhappiness with the lack of a petition each year. The Board engaged in a discussion of the elements that went into the formulation of current Rule Section 6.16, and whether utility costs are embedded in a tenant's base rent. Commissioner Mosbrucker expressed her support for trying the new methodology for a few years to see if it works – if the Board discovers that there is a lot of fraud, or passthroughs are not being done correctly, the issue can be reexamined. The Board then voted as follows:

MSC: To put the proposed amendments to Rules Sections 6.16 and 10.13 out for Public Hearing. (Mosbrucker/Beard: 3-2; Gruber, Murphy dissenting)

The proposed amendments are as follows below: (additions in underline; deletions in strikethrough)

Section 6.16 Utility Passthrough

(Added August 24, 2004; Subsection (i) amended September 21, 2004)

The following provisions shall apply to utility passthroughs where the notice of rent increase for the utility passthrough was served after November 1, 2004:

(a) Where a landlord pays for gas, electricity and/or steam provided directly to the unit occupied by the tenant and/or to the common areas of the property in which the unit is located, and seeks to recover the increase in the cost of these utilities from the tenant, the landlord may pass through the increased costs of the utilities between the  base year and the comparison year, as set forth below. must file a petition for approval of the utility passthrough on a form prescribed by the Board. The petition shall specify the units on the property that are subject to the petition. The petition will be decided without a hearing unless the Administrative Law Judge determines that a hearing is required.

(b) Determination of Initial  base year

(i) For all tenancies existing on December 31, 2003, the initial  base year for purposes of this section shall be calendar year 2002 with the following exception:

(ii) (A) However, For utility passthrough petitions filed prior to January 1, 2009, where a utility passthrough is was in effect for a tenancy on November 1, 2004, the landlord may could elect to use calendar year 2002 as the initial  base year or elect to continue to use the earlier  base year for all future utility passthrough calculations, provided that the landlord petitionsed the Board for approval of the earlier  base year and the Board determinesed that the earlier  base year is was proper under Section 4.11 of these Rules.

(B) For utility passthrough petitions and Utility Passthrough Calculation Worksheets filed on or after January 1, 2009, the initial  base year for all tenancies with an approved earlier  base year shall be calendar year 2003.

(iii)(ii) For all new tenancies commencing after December 31, 2003, the initial  base year shall be the calendar year immediately preceding the year of the inception of the tenancy.

(iv)(iii) A landlord may petition the Board for approval of an alternate  base year if the landlord became an owner of record after December 31, 2002 and demonstrates a good faith, but unsuccessful, effort to obtain the utility bills from the former landlord and/or the utility company that are necessary to establish the  base-year utility costs required by subsections (b)(i) or (b)(ii) or (b)(iii). The Board will not approve an alternate  base year that creates exaggerated results unless the proposed alternate  base year coincides with the landlord's first full calendar year of ownership.

(c) Subsequent Adjustments to Initial  base year

Different tenants in the same property may have different initial  base years depending on when they moved into the property or whether the Board has approved use of an earlier  base year pursuant to subsection (b)(ii)(i) above or use of an alternate  base year pursuant to subsection (b)(iv)(iii) above. The initial  base year utility costs shall be adjusted every five years as follows:

(i) Where the initial  base year is 2002 or later, a A new  base year is established at the end of every fifth calendar year after the initial  base year . For example, where the initial  base year is 2002, the new  base year shall be 2007 for petitions and Utility Passthrough Calculation Worksheets filed between January 1, 2009 and December 31, 2013. If the tenancy continues for an additional five years, the  base year will become 2012 for petitions and Utility Passthrough Calculation Worksheets filed between January 1, 2014 and December 31, 2018, and so on. For another example, where the initial  base year is 2003, including those tenancies that had an earlier  base year prior to January 1, 2009, the new  base year shall be 2008 for petitions and Utility Passthrough Calculation Worksheets filed between January 1, 2010 and December 31, 2010. If the tenancy continues for an additional five years, the  base year will become 2013 for petitions and Utility Passthrough Calculation Worksheets filed between January 1, 2015 and December 31, 2019, and so on. For another example, where the initial  base year is 2004, the new  base year shall be 2009 for petitions and Utility Passthrough Calculation Worksheets filed between January 1, 2011 and December 31, 2015. If the tenancy continues for an additional five years, the  base year will become 2014 for petitions and Utility Passthrough Calculation Worksheets filed between January 1, 2016 and December 31, 2020.

(ii) Where the initial  base year is prior to 2002 and has been approved by the Board pursuant to subsection (b)(ii) above, the landlord may elect to keep said  base year for purposes of future utility passthrough calculations without regard to subsection (c)(i) above. However, in such a case, the landlord must adjust the  base year utility costs every five years beginning with utility passthrough petitions filed in 2009. The first  base year adjustment shall equal the difference, if more than zero, between 2003 utility costs and 2007 utility costs, and it shall be added to the  base year utility cost used by the landlord. This  base year adjustment shall be in effect for petitions filed between January 1, 2009 and December 31, 2013. Every fifth year thereafter (i.e. 2014, 2019, etc.), the landlord's petition shall include another  base year adjustment equal to the difference in utility costs, if more than zero, for each subsequent five-year period (e.g., 2008 and 2012, 2013 and 2017, etc.). If utility costs decrease during any five-year adjustment period, then no adjustment shall be required to the  base year utility costs, but the landlord must deduct the amount of the decrease from the difference between the initial  base year utility costs and the new  comparison year utility costs. For example:

(A) Suppose a tenant's approved  base year is 1986, and the 1986 utility costs are $15,000. In 2009, the landlord must calculate the difference between the 2003 utility costs ($20,000) and the 2007 utility costs ($30,000). Since utility costs increased between 2003 and 2007, the landlord must add the increase ($10,000 [$30,000 minus $20,000]) to the initial  base year utility costs ($15,000) and then compare the adjusted  base year utility costs ($25,000 [$10,000 + $15,000]) to the 2009  comparison year utility costs ($35,000) in order to calculate the new utility passthrough ($10,000 [$35,000 minus $25,000]).

(B) If utility costs have decreased (e.g., 2003's utility costs = $20,000 and 2007's utility costs = $15,000), then the landlord does not adjust the 1986  base year utility costs ($15,000), but must deduct the decrease ($5,000 [$20.000 minus $15,000]) from the 2009 passthrough as follows: $35,000 (2009 utility costs) minus $15,000 (1986 utility costs) = $20,000 minus $5,000 (decrease between 2003 and 2007) = $15,000 new utility passthrough.

(d) Determination of  Comparison Year

For purposes of this section, the  comparison year in all cases shall be the calendar year immediately preceding the filing of the landlord's Utility Passthrough Calculation Worksheet or ppetition for aapproval of the uutility ppassthrough.

(e) Petition Required for Certain Utility Passthroughs

Effective January 1, 2009, the landlord is required to file a Petition for Approval of Utility Passthrough when using a comparison of utility costs for the prior two calendar years (e.g. 2007/2008 in 2009, 2008/2009 in 2010, 2009/2010 in 2011, etc.). The petition shall be on a form prescribed by the Board. The petition shall specify the units on the property that are subject to the petition. The petition will be decided without a hearing unless the Administrative Law Judge determines that a hearing is required.

(e) (f) Where the landlord is required to file a Petition for Approval of Utility Passthrough, T the landlord must file a the petition before giving legal notice of a rent increase for a utility passthrough. The petition must be filed no more than twelve months after the  comparison year listed in the petition. The notice of rent increase shall be in conformance with the requirements set forth in Section 4.10 above and shall further include the dollar amount requested for the utility passthrough. This increase for the utility passthrough shall be inoperative unless and until the petition is approved by the Administrative Law Judge. Any amounts approved by the Administrative Law Judge shall relate back to the effective date of the legal notice, if given. A landlord may choose instead not to serve legal notice of a proposed utility passthrough until after the decision of the Administrative Law Judge is rendered. In any event, no rent increase approved by the Administrative Law for a utility passthrough shall become effective until the tenant's anniversary date.

(g) Petition Not Required for Certain Utility Passthroughs

Effective January 1, 2009, the landlord is not required to file a Petition for Approval of Utility Passthrough using a comparison of costs for years other than the prior two calendar years. For example, in 2009, the landlord need not file a petition for  base year 2003, 2004, 2005 or 2006. However, in order to impose a utility passthrough, the landlord must comply with the following requirements:

(i) The landlord shall file a Utility Passthrough Calculation Worksheet with the Rent Board for each different  base year used, on a form prescribed by the Board, that shows how the passthrough was calculated. The Worksheet shall be filed within twelve months of the  comparison year used in calculating the amount of the passthrough. The Rent Board shall review ten percent (10%) of all Worksheets filed with the Board. In addition, if there is no prior utility passthrough petition on file for a property for which a Worksheet is filed, the Rent Board shall review at least one Worksheet for that property.

(ii) The landlord must file the Worksheet with the Board before giving legal notice of a rent increase for a utility passthrough. The notice of rent increase shall be in conformance with the requirements set forth in Section 4.10 above and shall further include the dollar amount requested for the utility passthrough. The landlord must provide the tenant with a file-stamped copy of the Utility Passthrough Calculation Worksheet at the time of service of the notice of rent increase.

(iii) A tenant who receives a utility passthrough under this subsection (g) may file a hardship application with the Board within one year of the effective date of the passthrough, and may be granted relief from all or part of such passthrough based on hardship.

(g) (h) Laundry Facilities

Where the utility bills include the cost of gas and/or electricity for laundry facilities and the landlord charges a user fee for the laundry facilities, the landlord may not pass through any increase in the building's cost of utilities unless the landlord complies with one of the following subsections:

(i) where the laundry facilities are separately metered in both the  base year and  comparison year , the landlord shall not include the utility costs for the laundry facilities in the utility passthrough calculation; or

(ii) where the laundry facilities are not separately metered in both the  base year and the  comparison year and there is a third party vendor that collects the user fees from the laundry facilities, the landlord shall deduct the income actually received by the landlord from the third party vendor from the total utility costs for the building; or

(iii) where the laundry facilities are not separately metered in both the  base year and the  comparison year and there is not a third party vendor that collects the user fees from the laundry facilities, the landlord shall deduct 50% of the user fees actually collected by the landlord from the total utility costs for the building; or

(iv) where the laundry facilities are not separately metered in both the  base year and  comparison year , the landlord shall deduct the actual costs of utilities that serve such laundry facilities, if proved by the landlord using a methodology that has been approved by the Rent Board.

(h) (i) Where the utility bills include the cost of gas and/or electricity for laundry facilities and the laundry facilities are not available to or operated for the benefit of the tenant, and the laundry facilities are not separately metered in both the  base year and  comparison year , the landlord may not pass through to that tenant any increase in the building's cost of utilities.

(i) (j) Calculation of the Utility Passthrough

The landlord shall calculate the amount of the utility passthrough as follows:

(i) Compile the utility bills for the  base year and the  comparison year as defined in subsections (b), (c) and (d) above. The utility passthrough shall be based on actual costs incurred by the landlord during the relevant calendar years, regardless of when the utility bill was received or paid.

(ii) Calculate the total utility cost for the  base year and the total utility cost for the  comparison year .

(iii) Where the laundry facilities are not separately metered in both the  base year and the  comparison year , compile evidence of and calculate the actual cost of utilities that serve the laundry facilities in the  base year and the  comparison year .

(A) Where the landlord cannot prove the actual cost of utilities that serve the laundry facilities and a third party vendor collects the user fees from the laundry facilities, compile evidence of and calculate the income actually received by the landlord from the third party vendor for the use of the laundry facilities in the  base year and the  comparison year .

(B) Where the landlord cannot prove the actual cost of utilities that serve the laundry facilities and the landlord collects the user fees from the laundry facilities, compile evidence of the user fees actually collected by the landlord for the use of the laundry facilities in the  base year and the  comparison year and calculate 50% of the amount collected.

(iv) Where the laundry facilities are not separately metered in both the  base year and the  comparison year , subtract the utility costs for the laundry facilities, as calculated in subsection (iii) above, from the total utility cost for the  base year and the total utility cost for the  comparison year .

(v) Subtract the total  base year utility cost (excluding utility costs for the laundry facilities) from the total  comparison year utility cost (excluding utility costs for the laundry facilities) to get the utility cost increase. If there is no increase or if there has been a decrease, no passthrough is allowed.

(vi) Divide the resulting figure, if greater than zero, by twelve (12) to determine the average monthly utility increase for the entire property.

(vii) Divide the average monthly utility increase by the number of rooms in the property to get the amount of the utility passthrough that may be imposed for each room. For purposes of this section, the number of rooms in a property shall be calculated by presuming that single rooms without kitchens are one room units, studios are two room units, one bedroom units without a separate dining room are three room units, and so on. Each parking space and garage space in the building which is included in a tenant's rental or for which a user fee is charged shall be counted as one room. Areas used for commercial purposes but for which no user fee is charged to the tenants, including but not limited to management offices and retail space, shall be included in the room count in a manner that most reasonably takes into account the size of the space and its utility usage.

(viii) To get the monthly utility passthrough for a unit, add the number of rooms in the unit to the number of rooms for parking and/or garage spaces included in the tenant's rental or for which a user fee is paid by the tenant, and multiply that total number of rooms by the monthly utility increase per room.

(f) (k) No landlord may pass through any increase in the cost of utilities to a tenant until the tenant has occupied the unit in the subject property for one continuous year.

(j) (l) Each utility passthrough shall apply only for the twelve-month period after it is imposed.

(k) (m) Nothing in this section or in these Rules and Regulations shall be interpreted as requiring any landlord to pass through any utility increase or to increase any tenant's rent.

(l) (n) The amount of rent due from the tenant for any utility passthrough shall be due on the same date as a rent payment normally would be due.

(m) (o) A utility passthrough may be imposed only at the time of an annual rent increase. However, no amount passed through to the tenant as a utility increase shall be included in the tenant's base rent for purposes of calculation of the amount of rent increases allowable under the Ordinance and these Rules and Regulations.

(n) (p) The provisions of this Section shall be deemed a part of every rental agreement or lease, written or oral, for the possession of a rental unit subject to the Ordinance unless the landlord and the tenant agree that the landlord will not pass through any utility increases, in which case such agreement will be binding on the landlord and on any successor owner of the property.

(o) (q) Where a utility increase has been lawfully passed through to the tenant, a change in the ownership of the property in which the tenant's unit is located will not affect the tenant's liability to pay the amount passed through.

Section 10.13 Improper Utility Passthrough

(Added August 24, 2004)

(a) The following provisions shall apply to utility passthroughs where the notice of rent increase for the utility passthrough was served after November 1, 2004 where a Petition For Approval Of The Utility Passthrough was required to be filed under Section 6.16 of these Rules:

(a) (i) A tenant may petition for an arbitration hearing if the landlord has increased the tenant's rent based on an increase in utility costs, but (1) has failed to file a petition for approval of the utility passthrough pursuant to Section 6.16 of these Rules, or (2) has failed to discontinue the utility passthrough after twelve months.

(b) (ii) The landlord shall have the burden of proving that the utility passthrough has been approved and/or imposed in accordance with Section 6.16 of these Rules.

(c) (iii) A petition based on this section shall be accompanied by the notice of increase.

(b) The following provisions shall apply to utility passthroughs where the notice of rent increase for the utility passthrough was served after January 1, 2009 where a Petition For Approval Of The Utility Passthrough was not required to be filed under Section 6.16:

(i) A tenant may petition for an arbitration hearing if the landlord has increased the tenant's rent based on an increase in utility costs, but (1) did not file a Utility Passthrough Calculation Worksheet with the Rent Board pursuant to Section 6.16 of these Rules; or (2) did not serve the tenant with a copy of the Utility Passthrough Calculation Worksheet, date-stamped by the Rent Board, with the notice of increase for the utility passthrough; or (3) did not properly calculate the utility passthrough or used an incorrect room count; or (4) did not discontinue the utility passthrough after twelve months.

(ii) The landlord shall have the burden of proving that the utility passthrough has been approved and/or imposed in accordance with Section 6.16 of these Rules.

(iii) A petition based on this section shall be accompanied by the notice of increase.

The Public Hearing will be held on December 16th at 6:30 p.m.

IV. Remarks from the Public (cont.)

G. Chi Hom, speaking on behalf of the tenants at 1142 Jackson #4 (AT080116), said that he was  displeased with the Board's denial of the tenants' appeal. Mr. Hom said that there was no quiet enjoyment of the unit when the landlord was installing a second bathroom in the unit upstairs. He told the Board that the tenants are an immigrant family who don't necessarily want to file complaints. He asked that the Commissioners put this building on their radar because he believes that the landlord is trying to get rid of below-market tenants. He also told the Board that a downstairs unit is uninhabitable.

H. Clay Tominaga, Managing Director of the Golden Gateway complex, said that he believed a  good faith compromise was reached regarding utility passthroughs five years ago. Mr. Tominaga said that no one has spoken to Golden Gateway management about the proposed changes, although they will be affected. Mr. Tominaga estimated that the proposed changes would result in an approximate $50-100,000  hit. He also said that there is no history as to why the law was changed.

I. Golden Gateway tenant Phil Page expressed his belief that indexing of the base rent with the utility costs each year would be the most logical and fair method for landlords and tenants. Mr. Page said that indexing would have saved Golden Gateway tenants $800-900,000. While the new proposal will provide some relief, Mr. Page would prefer indexing.

J. Golden Gateway tenant Bob Coleman said that he didn't hear any discussion of asking the Golden Gateway Center to disgorge the  windfall they received or make restitution to the tenants for extra monies they have received over the past few years. He said that their threat of legal action should be seen for what it is.

IX. Calendar Items

December 9, 2008 – NO MEETING

December 16, 2008

3 appeal considerations

6:30 Public Hearing: Utility Passthrough Regulations 6.16 and 10.13

X. Adjournment

President Gruber adjourned the meeting at 8:35 p.m.

NOTE: If any materials related to an item on this agenda have been distributed to the Commission after distribution of the agenda packet, those materials are available for public inspection at the office of the Rent Board during normal office hours.

Last updated: 10/9/2009 11:26:18 AM