Court of Appeal Decision Finds Increased Ellis Relocation Payments Ordinance Unlawful – Update #3 (7/23/17)

On July 14, 2015, the Board of Supervisors amended Rent Ordinance Sections 37.9A(e)(3)(E)-(H) to provide that each tenant displaced under the Ellis Act is entitled to the greater of (1) the existing rent relocation payment or (2) the difference between the tenant’s current rent and the market rental rate as determined by the Controller’s Office, multiplied to cover a two-year period. On October 2, 2015, the San Francisco Superior Court found the amendment unlawful and enjoined the City from enforcing it. On March 21, 2017, the California Court of Appeal affirmed the lower court's decision in Coyne v. CCSF (2017) 9 Cal. App. 5th 1215. The Court of Appeal decision is final, and the prior Ellis relocation benefits set forth in Section 37.9A therefore remain in effect.