Proposition H Advisory # 5 - 1/10/01

Proposition H Advisory # 5 - 1/10/01

Proposition H Advisory #5 –1/10/01

The Commission met on Tuesday, January 9, 2001, to discuss Prop H implementation. After hearing from over 30 speakers, the Commission went into Executive Session to discuss their options in light of the injunction.

 

After consultation in Executive Session with the City Attorney, the Board passed the following motion:  “To ask the City Attorney, with input from Rent Board staff, to draft comprehensive regulations to make Proposition H constitutional and workable with all deliberate speed.” This is likely to take at least 3 weeks. The Board will then review, make any changes they wish, and put the Regulations out for Public Hearing.  After they are adopted, the City Attorney will go back to Judge Robertson to ask that the Temporary Injunction be lifted and for a hearing on the merits of Prop. H.

 

Whether Prop. H gets upheld or thrown out by the Judge, there will most likely be an appeal.  It is estimated to take six months to a year for a case to get heard by the Court of Appeal, and it is possible that a further Stay would be granted in the interim.

 

The Judge’s order did not prohibit the filing and processing of capital improvement petitions at the Rent Board. Accordingly, the department will continue to process petitions as usual. Commissioners discussed the huge liability that tenants might be exposed to if Prop H were to be thrown out by the Courts and tenants were then liable for past increases that were noticed but never paid—particularly if litigation goes on for a year or more. They also discussed the idea of allowing tenants to file hardship appeals in later years where the imposition of an accumulated passthrough, on top of the original 10%, would create a hardship at a later date. The Commission agreed to discuss this idea at a future meeting.  

We do not anticipate another Advisory until the City Attorney returns a draft to the Commission which will probably be another 3 to 4 weeks.