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March 17, 2009

March 17, 2009

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

Tuesday, March 17, 2009 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 6:07 p.m.

II. Roll Call

Commissioners Present: Beard; Gruber; Henderson; Hurley; Mosser.

Commissioners not Present: Crow; Justman; Mosbrucker; Murphy.

Staff Present: Gartzman; Lee; Wolf.

Commissioner Marshall appeared on the record at 6:10 p.m.

III. Approval of the Minutes

MSC: To approve the Minutes of February 17, 2009.

(Henderson/Hurley: 4-0)

IV. Remarks from the Public

A. Tenant Anastasia Yovanopoulos of 3718 – 24th St. (AT090077) told the Board that the landlord declared that there are separate meters for the laundry facilities in the building, but PG&E may not agree that this is the case.

B. Mukundagiri Venkatachari of 355 Serrano (AT090079) asked the Commissioners if the new utility passthrough procedures make passthroughs "almost automatic," with no opportunity for tenants to comment.

C. Attorney Miriam Smith appeared on behalf of tenant Karla Hour of 1327 Bay St. (AT090074). Ms. Smith said that the tenant is seeking a re-hearing on the landlord's claim that the subject unit is not the tenant's principal place of residence. Ms. Smith told the Board that the tenant was not represented at the hearing while the landlord was, which was prejudicial to the tenant. Ms. Smith also claimed that her client did not understand what was going on at the proceedings in her case.

D. Attorney John Zanghi appeared on behalf of the landlord in the case at 1327 Bay Street. Mr. Zanghi objected to the late request for a re-hearing and disputed the contention that the tenant didn't understand what was occurring, since she has been in this country for 23 years and run two businesses. Mr. Zanghi said that the tenant had no credibility, as she was served with the rent increase notice at 8:30 p.m. in a building in Vallejo; the tenants in the subject building never see her; and ads to sublet the premises were placed on Craigslist. Mr. Zanghi told the Board that the tenant had a representative who provided a closing brief to the Administrative Law Judge (ALJ), for which the record was re-opened.

E. Attorney Josef Pertez appeared on behalf of the tenant at 2600 – 47th Ave. (AL090072), saying that the Decision is well reasoned and balances time and compensation issues. Mr. Pertez alleged that the landlord's appeal throws up irrelevant issues that could have been brought up at the hearing if the landlord hadn't failed to appear. Mr. Pertez maintained that new evidence shouldn't be permitted.

F. Landlord Francis Ha of 2600 – 47th Ave. told the Board that he doesn't understand the system and that he is "nervous and powerless," with no money. Mr. Ha said that the tenant asked for $15,000 to vacate and he said he would give her more time to move. Mr. Ha feels that the Decision is unfair, and asked the Board for two more weeks and one more chance.

G. Tenant Karla Hour told the Board that she has lived in this country for almost 22 years but never went to school here. She said that she is not always home because she works very hard making custom wedding gowns. Ms. Hour maintained that the Bay Street unit is her home and the landlord who passed away knew that. Ms. Hour explained that her partner passed away in January, she has a bad memory and doesn't remember names and said that she didn't have enough time to find an attorney prior to the hearing. Ms. Hour doesn't believe in resolving things through the courts and asked the Board for another chance.

H. Tenant Daniel Mark Andrews of 1437 – 23rd Ave. (AL090075) asked the Board to reject the landlord's appeal because none of the 3 main points are valid. Mr. Andrews said that the landlord only alleged bias on the part of the ALJ after she received a Decision in the case, although she could have raised this concern at the hearing. Mr. Andrews claimed that the landlord failed to take reasonable action regarding the noisy neighbors, only doing 3 things over a 3-year period. Mr. Andrews also pointed out that the rent reduction did not go back to the first time the landlord was notified of the problem.

I. Chelsea Andrews, Daniel Mark Andrew's daughter, said that the landlord's appeal should be denied and asked the Board to honor the tenant's request.

J. Michael Wellington said that he is Karla Hour's "Home Teacher" through their church. Mr. Wellington said that he has visited Karla at the Bay Street unit a number of times over the past year and that the building in Vallejo is a project, and not her residence.

K. Debby Kwok, the landlord at 1437 – 23rd Ave., said that the problem was that the tenants didn't get along and filed noise complaints against each other over the last 3 years. Ms. Kwok maintained that she had an obligation to be fair and impartial and that she did what she could within the law and Rent Board guidelines. Ms. Kwok said that she took reasonable steps by sending letters and making phone calls, trying to independently verify by talking to neighbors, consulting with attorneys and requesting mediation at the Rent Board.

L. Stella Lau, a co-owner of 1437 – 23rd Ave., said that the ALJ should have recused himself because he conducted a prior mediation with the same parties. Ms. Lau alleged that the ALJ was biased and unfair to the landlords. Ms. Lau also maintained that the rent reduction was granted for 36 months instead of 12, and said that the tenant did not meet his burden of proof for the other 2 years.

M. Gloria Alioto spoke on behalf of Karla Hour as they are in the same congregation. Ms. Alioto said that she has been Ms. Hour's "Visiting Teacher" for 7 years and has called or visited her once a month at the Bay Street address. Ms. Alioto said that the current owner of the property is the nephew of the deceased prior owner and that the Vallejo property is a business.

N. Micki Weston is also a "Visiting Teacher" for Karla Hour and said that she has had dinner at the Bay Street unit. Ms. Weston said that there are clothes and furnishings at Bay Street, and that it is Ms. Hour's place of residence. Ms. Weston asked that the Board grant Ms. Hour another hearing so that she and the other church members could testify, since Ms. Hour has been grieving the loss of her partner and dealing with his business over the past year.

V. Consideration of Appeals

A. 17 Grijalva Dr. AT090071

The landlord's petition for approval of utility passthroughs in this multi-unit complex was granted. One tenant 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. (Henderson/Marshall: 5-0)

B. 729 Jones #509 AT090073

The landlord's petition for approval of utility passthroughs for 26 of 81 units was granted. One tenant 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. (Marshall/Hurley: 5-0)

C. 350 Arballo #11J AT090076

The landlord's petition for approval of utility passthroughs for 45 of 153 units was granted. One tenant 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. (Marshall/Hurley: 5-0)

D. 201 Divisadero AT090082

The landlord's petition for approval of utility passthroughs for 7 of 8 units was granted. One tenant 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. (Marshall/Henderson: 4-1; Gruber dissenting)

E. 3718 – 24th St. AT090077 & -78

The landlord's petition for approval of utility passthroughs for 2 of 6 units was granted. One tenant appeals the decision on the basis of financial hardship and on the grounds that the costs for gas and electricity for the laundry facility on the premises are already recovered because the appliances are coin-operated.

MSC: To accept appeal number AT090078 and remand the case to the Administrative Law Judge for a hearing on the tenant's claim of financial hardship. (Henderson/Marshall: 5-0)

MSC: To accept appeal number AT090077 and remand the case to the Administrative Law Judge to look into the issue of whether the laundry facilities are separately metered. (Marshall/Hurley: 5-0)

F. 355 Serrano Dr. 12A & 12C AT090079 & -80

The landlord's petition for approval of utility passthroughs to 44 of 153 units was granted. The tenants in two units appeal the decision on the grounds that: the cost of gas to supply hot water to the units must be separated out because the gas is not provided directly to the tenants and hot water is not a utility that can be passed on; the boiler is not a "common area"; each storage area should be counted as one room; the utility costs for the laundry room were underestimated; and utility costs associated with construction work should not have been allowed.

MSC: To deny the appeals. (Hurley/Marshall: 5-0)

G. 2600 – 47th Ave. AL090072

The tenant's petition alleging decreased housing services due to habitability problems in the unit was granted, in part, and the landlord was found liable to the tenant in the amount of $750.00. The landlord appeals, maintaining that: the tenant was asked to vacate the premises for the landlord's father-in-law but demanded $15,000 and has refused to move; the tenant has violated the agreement that there be no pets on the property; the tenant has failed to provide the landlord with a key to her unit and changed the lock without permission; the tenant abandoned the premises for a year; the tenant failed to pay rent for two months, which presents a hardship for the landlord; the landlord's postponement request should have been granted; the landlord did not understand the notices he received from the Rent Board, since English is not his native language; and the tenant's rent is less than the neighborhood average.

MSC: To deny the appeal. (Henderson/Gruber: 5-0)

H. 1018 Cortland #7 AT090070

The tenant's petition alleging decreased housing services, the landlord's failure to repair and unlawful rent increases was granted as to some of the decreased housing claims only, and the landlords were found liable to the tenant in the amount of $666.26. The tenant appeals, claiming that: the current owners should not be entitled to banked rent increases that former owners failed to impose; the Decision is incorrect in stating that he withdrew additional plumbing claims at the hearing; repair work in his apartment was not adequately done; he was provided with two storage spaces at the inception of his tenancy; he was erroneously informed of the filing deadline for his failure to repair claim by a Rent Board employee; he did not refuse the landlord access to the apartment to make the repairs; and the tenants in the building used the roof as a common area.

MSC: To deny the appeal. (Hurley/Gruber: 5-0)

I. 1437 – 23rd Ave. AL090075

The tenant's petition alleging decreased housing services was granted and the landlords were found liable to the tenant in the amount of $7,675.00 due to excessive noise from a neighboring unit and $525.00 due to second-hand smoke in the unit. On appeal, the landlord maintains that: the Administrative Law Judge was biased due to pre- and post-hearing communications with the tenant; the landlord took timely and appropriate actions to ameliorate the problem; the landlord was in a difficult position in determining which of the tenants was at fault; the decision does not follow precedent set by prior decisions of the Board; the landlord was not given a reasonable amount of time to address the problems; the tenant failed to prove that rent reductions were warranted for more than one year prior to the filing of the petition; the amounts granted are excessive and unfair; there are factual errors in the decision; and the upstairs tenant has moved out, so housing services have been restored.

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

J. 1327 Bay St. #A AT090074

The landlord's petition seeking a determination pursuant to Rules Sections 1.21was granted because the Administrative Law Judge found that the subject unit was not the tenant's principal place of residence. On appeal, the tenant claims that: English is not the tenant's native language which led to misunderstandings and errors in the Decision; false evidence was presented by the landlord; she did not place ads on the internet to rent out the unit but, rather, had roommates; it was the prior owner's wish that she be allowed to stay in the building as long as she wished; church records show the subject unit as her principal place of residence; the tenant spent time at two other units for commercial reasons; she did not understand the ramifications of taking a homeowner's exemption on another property; and she uses a post office box because mail was taken from the mailbox at the subject unit.

MSC: To deny the appeal. (Hurley/Gruber: 5-0)

K. 1598 Fulton St. AL090081

The tenant's petition alleging decreased housing services was granted only as to a water leak in the bathroom and the landlords were found liable to the tenant in the amount of $3,700.00. On appeal, the landlords maintain that both the landlord's agent and contractor believed that the leak had been fixed several years before and the tenant has failed to prove that she provided notice as to the continuing problem after that date.

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

VI. Communications

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

A. A copy of the case of Clark v. Mazgani (Los Angeles Superior Court No. BC358995).

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

C. The office Monthly Workload Statistics for the months of December 2008 and January 2009.

D. A Statement calling for the dissolution of the Rent Board from SRO tenant Allen White.

E. Articles from the S.F. Chronicle, the S.F. Daily Journal, and the New York Times.

F. Press Releases from City Attorney Dennis Herrera and Tenants Together regarding the rights of tenants in foreclosed properties.

VII. Director's Report

Executive Director Delene Wolf told the Board that another lawsuit challenging Proposition M has been filed by the Small Property Owners of San Francisco and Tim Carrico. She also reminded the Commissioners that their Form 700 Statements of Economic Interest are due by April 1st.

VIII. Old Business

Petitions for Extension of Time To Do Capital Improvement Work

(Rules and Regulations ß12.15)

Discussion of this issue was continued to the meeting of April 21st.

IV. Remarks from the Public (cont.)

O. Landlord Francis Ha said that he doesn't agree with the remarks that were made concerning his appeal. Mr. Ha said that he couldn't attend the second hearing because no attorney would help him and that he has no access to his back yard. Mr. Ha believes that the Board wants to "help the victim," but feels that he is the victim. Mr. Ha also maintained that he is a "distressed homeowner asking for one more negotiation," rather than a landlord.

P. Tenant Mukundagiri Venkatachari expressed his disappointment with the Board's denial of his appeal. Mr. Venkatachari said that Rules ß6.16 provides for the passthrough of charges for electricity, gas and steam, but not hot water, which is supposed to be supplied directly to the units or common areas. He said that the laundry room methodology has been approved in prior decisions, but the numbers are incorrect. He alleged that Parkmerced management engages in systematic attempts to downplay the amount of utilities used, and he had hoped for a hearing to explore these and other issues.

Q. Attorney Miriam Smith, representing tenant Karla Hour, said that she teaches law at S.F. State University and has had the experience of thinking that her students understand what is being said, and finding out that the non-native English speakers did not. Ms. Smith told the Board that visual and auditory learners are different, and Karla Hour is a "visual thinker." Ms. Smith feels that it is unfair when one party is represented in a hearing and the other is not, and told the Board she will "continue on with her remedies."

X. Calendar Items

March 24, 2009 – NO MEETING

March 31, 2009

12 appeal considerations

XI. Adjournment

President Gruber adjourned the meeting at 7:50 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