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August 7, 2001


                                                                                                                                                                                                                                                                                                                                                                                              

 

MINUTES OF THE REGULAR MEETING OF

THE SAN FRANCISCO RESIDENTIAL RENT

STABILIZATION & ARBITRATION BOARD,

 

Tuesday, August 7, 2001 at 6:00 p.m. at

25 Van Ness Avenue, Suite 70, Lower Level

 

 

 

            I.            Call to Order

 

            President Wasserman called the meeting to order at 6:15 p.m.

 

            II.            Roll Call

 

                                                                        Commissioners Present:            Aung; Becker; Gruber; Hobson; Lightner; Marshall; Murphy; Wasserman.

                                                                        Commissioners not Present:            Justman; Mosser.

                                                                        Staff Present:            Wolf.

 

      Commissioner Murphy went off the record at 7:10 p.m.; Commissioner Hobson left the meeting at 7:22 p.m.

 

            III.            Approval of the Minutes

 

                                    MSC:            To approve the Minutes of July 10, 2001.

                                                (Lightner/Marshall:  5-0)

 

            IV.            Remarks from the Public

 

            A.  Karen Hull, attorney for the tenants at 1375 Green St. (AL010120), asked that Commissioner Lightner be recused from consideration of this case because one of her employees had acted as a witness for the landlord.

 

            B.  Escanio Pianelli, attorney for the tenant in the case at 305 San Carlos St. (AT010119), responded to “mis-characterizations” in the landlord’s response to the tenant’s appeal, which had not been timely provided to tenant’s counsel.

 

            V.            Consideration of Appeals

 

            A.            1800-1806 – 16th Ave.                                    AL010111

                                                            (cont. from 7/10/01)

 

      The landlord’s petition for rent increases to the tenants in two units was partially granted only as to only one unit (1804).  It was found that the rent paid by the tenant in unit 1806 was only slightly less than that for other comparable units, and therefore no additional increase was warranted.  Both tenants are the children and two of four beneficiaries of the deceased prior owner; the tenant in unit 1804 had been living in the building rent-free.  The landlord appealed, asserting that:  the tenant in unit 1806 moved in to that unit upon her own initiative and not pursuant to any request from the landlord, so there was a new rather than a continuing tenancy; Rules Section 6.11(a)(3) requires that the length of occupancy of the subject unit be considered, and not the length of time the tenant has lived in the building; the tenant in unit 1806 has lived in the building for 9 fewer years than the tenant in unit 1804, but her rent is a lesser amount; evidence was presented at the hearing to show that the initial rent for unit 1806 was far less than market; “perfect comparability” was required by the Administrative Law Judge, which is contrary to the language of the Regulation; improvements made to unit 1806 should be taken into account; and the subject tenants should not reap more benefits than their siblings by having life-time rent controlled leases and receiving their share of the sale proceeds of the building.

 

      Since the Memorandum prepared by the Administrative Law Judge had not been timely received by the parties, consideration of this case was continued from the July 10th Board meeting.

 

                                    MSC: To recuse Commissioner Lightner from consideration of this case.  (Gruber/Marshall:  5-0)

 

                                    MSC: To recuse Commissioner Becker from consideration of this appeal.  (Marshall/Gruber:  5-0)

 

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

 

                                    B.  1375 Green St. #                                                AL010120

 

      The landlord’s petition for rent increases for four units based on comparable rents was denied because the Administrative Law Judge found that the initial rents were not set low due to a special relationship but, rather, because the units were in deplorable condition; and because the landlord failed to provide adequate evidence of rents for comparable units at the time the units were rented.  On appeal, the landlord asserts:  the Administrative Law Judge prevented the petitioner from presenting relevant evidence, excluded competent evidence as hearsay and exhibited bias against the landlord; there was no evidence to show that the rents in the building were set by the owner, rather than the manager, who had a personal relationship with the tenants; testimony from all of the experts at the hearing, including a witness for the tenants, concluded that the initial rents for the units were set at less than market, even considering the condition of the units at the time; and the case of Vega v. City of West Hollywood does not require that the low rents had been set prior to the enactment of a rent control ordinance.

 

                                    MSC: To recuse Commissioner Lightner from consideration of this appeal.  (Marshall/Becker:  5-0)

 

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

 

                        C.  1000 Howard #305                                    AT010115

                                                            (cont. from 7/10/01)

 

      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 $1,375.00 due to a faulty fire exit door and lack of building cleanliness.  The tenant appealed, claiming that the amounts granted are inadequate, considering the nature of the conditions.

 

      After discussion at the July 10th Board meeting, the Commissioners requested that the Administrative Law Judge prepare a Memorandum explaining how he arrived at the amount of the rent reductions and continued consideration of this case.

 

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

 

            D.            1910 Greenwich St. #7                                    AL010118

 

      The landlord’s appeal was filed 33 days late because the landlord’s attorney did not receive a copy of the Decision until a week after it was mailed out; the attorney had long-standing vacation plans, and thought that another attorney in his firm was going to file the appeal; and he required a transcript of the hearing tapes in order to prepare the appeal.

 

                                    MSC: To find good cause for the late filing of the appeal.  (Lightner/Gruber:  5-0)

 

      The tenants’ petition alleging an unlawful rent increase was granted and a proposed rent increase from $1,635.00 to $2,900.00 was found not warranted by the Costa-Hawkins Rental Housing Act.  The Administrative Law Judge found that an original tenant still permanently resides on the premises, although he is temporarily living in Ithaca, New York, while attending grad school.  On appeal, the landlord contends that:  the tenant does not live at the premises, and only visits occasionally; utilities have been switched out of the tenant’s name; facts alleged in the Decision are not supported by any evidence in the record; the requirement in Costa-Hawkins is that the tenant no longer permanently reside on the premises, not that they must have permanently vacated; there is no evidence that the tenant will, with certainty, occupy the premises in the future on a long-term basis; and the Decision in this case is in conflict with a recent Decision in another similar case.

 

                                    MSC: To accept the appeal and remand the case for a new hearing to obtain competent and direct evidence from the tenant who did not attend the original hearing as to his current relationship to the unit and intent to return; telephonic testimony can be arranged.  (Gruber/Lightner:  5-0)

 

            E.            2311-A California St.                                    AL010117

 

      The tenant’s petition alleging unlawful increases in rent and substantial decreases in housing services was granted, in part, and the landlord was found liable to the tenant in the amount of $7,258.00 due to several wrongful rent increases.  The landlord was also advised that PG&E costs could not be transferred to the tenant.  A claim of decreased housing services due to alleged noise emanating from the landlord’s unit was denied.  On appeal, the landlord asserts that the rent increase calculations in the Decision are incorrect; that the tenant’s move-in date was July of 1994, and not September; and that the landlord did not agree to pay for all utilities at the inception of the tenancy.

 

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

 

            F.            305 San Carlos St. #3                                    AT010119

 

      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 $2,266.88 due to numerous habitability defects on the premises.  Long-term notice of the conditions was not proved to have been given by the tenant to the landlord, so the rent reductions were limited to the one year period prior to the filing of the petition.  On appeal, the tenant asserts that the Administrative Law Judge erred by requiring that notice as to the defects had to have been given repeatedly.   Rather, the tenant contends that the rent reductions for 4 of the conditions should commence on May 10, 1994, the later of two possible dates that the parties agree the landlord came to the premises.  As to the remaining problem of the broken doorbell, the tenant claims that the rent reduction should begin on April 1, 1992, or one week after the landlord indicated in writing that he was aware of the defect and the tenant informed the landlord that he wanted it repaired. 

 

                                    MSF: To accept the appeal and remand the case to the Administrative Law Judge to find that long-term notice was given back to May 10, 1994 as to the protruding shower valves and the doorbell, and to adjust the rent reductions granted accordingly.  (Wasserman/Marshall:  2-3; Becker, Gruber, Lightner dissenting)

 

                                    MSF: To accept the appeal and remand the case to the Administrative Law Judge to find that long-term notice was given back to May 10, 1994 as to the protruding shower valves, the doorbell, the bathroom ceiling leaks, bathroom window frame and counter backsplash, and to adjust the rent reductions granted accordingly.  (Becker/Marshall:  2-3; Gruber, Lightner, Wasserman dissenting)

 

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

 

                                    G.  34 – 6th St. #433                                                AT010121

 

      The tenant’s appeal was filed three months late because the tenant claims not to have received a copy of the Dismissal of his petition.

 

                                    MSC: To find good cause for the late filing of the appeal.  (Becker/Lightner:  5-0)

 

      The tenant’s petition alleging decreased housing services was dismissed due to his failure to appear at the properly noticed hearing.  On appeal, the tenant claims not to have received the Notice of Hearing, and attaches the requisite Declaration of Non-Receipt of Notice of Hearing.

 

                                    MSC: To accept the appeal and remand the case for a new hearing.  (Becker/Marshall:  5-0)

 

                                    H.  3116 – 16th St. #17                                                AT010110

 

      The landlord’s petition for certification of capital improvement costs for 18 of 30 units was granted.  One tenant filed an appeal on the grounds of financial hardship.  Pursuant to the Moratorium on processing of capital improvement petitions, and a subsequent Request for Continued Processing on the part of the landlord, the portion of the Decision certifying seismic retrofit costs only is being appealed at this time.

 

                                    MSC: To recuse Commissioner Wasserman from consideration of this appeal.  (Becker/Gruber:  5-0)

 

                                    MSC: To deny the appeal.  (Lightner/Gruber:  4-0)

 

            VI.            Communications

 

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

 

            A.  An Invitation from the Mayor to the signing of the 2001-2002 budget on August 9th at 3:00 p.m.

 

            B.  The Department’s Annual Statistical Report.

 

            C.  The Agenda and Notice of Public Hearing for the meeting on August 21st, which will be held at City Hall, Room 406.

 

            VII.            Director’s Report

 

      In the absence of Executive Director Grubb, Deputy Director Wolf informed the Board that there would be a hearing on the Proposed Order in the case of Quigg v. Rent Board (Superior Court Case No. 316928) on August 8th at 3:30 p.m. in Department 302.

 

            IV.            Remarks from the Public (cont.)

 

                        C.  Karen Crommie encouraged the Board to pass proposed new Section 6.15C(3), since “tenants should be subject to the same rules as landlords.”

 

            VIII.            New Business

 

      Commissioner Marshall asked that a discussion of the problem raised in the case of Goodwin v. Rent Board (Superior Court Case No. 317339) be put on the calendar for a future meeting.  In this case, the Court found that the landlord was entitled to two operating and maintenance expense increases, one based on his purchase and one based on the increased property taxes incurred by the estate after the death of the prior owner.  This issue will be discussed at the September 18th meeting.

 

            IX.            Calendar Items

 

            August 14, 2001 - NO MEETING

 

            August 21, 2001

            6 appeal considerations

6:30      Public Hearing:

      Proposed New Section 6.15C(3) Requiring that a Master Tenant Pay a Pro-Rata Share of the Rent

 

            X.            Adjournment

 

      President Wasserman adjourned the meeting at 8:45 p.m.

Last updated: 6/5/2012 11:24:30 AM