May 01, 2001
April 11, 2001
NOTICE OF PUBLIC
HEARING
DATE: May 1, 2001
TIME:
6:30 P.M.
PLACE: 25 VAN NESS AVENUE (AT MARKET ST.)
THE RENT BOARD COMMISSIONERS INVITE THE PUBLIC
TO COMMENT ON PROPOSED CHANGES TO THE ADMINISTRATIVE POLICY OF THE RENT
BOARD REGARDING REVOCATION OF A NOTICE OF INTENT TO WITHDRAW RESIDENTIAL
UNITS FROM THE RENTAL MARKET UNDER THE ELLIS ACT.
Section 7060.4(a) of the Ellis Act provides that public
entities may require the owner to file with the entity a notice of intent to
withdraw rental units from the rental market under penalty of perjury, to certify
in the notice of intent that eviction notices have been served to terminate
existing tenancies, and to record with the county recorder a memorandum summarizing
the notice of intent. Withdrawal is effective 120 days from the date of filing
of the notice of intent with the public entity unless extended to one year for
elderly or disabled tenants. (Ibid.) Section 7060.3 further requires
the Rent Board to record a Notice of Constraints concerning the withdrawn units,
so that the owner must offer any units put back on the rental market first to
the displaced tenants, and also must rent the units at the rent-controlled rent.
The Ellis Act is silent as to the ability of an owner
to revoke a notice of intent to withdraw once it is filed with the Rent Board.
However, Section 7060.7(c) of the Act specifically states that the Act is not
intended to "override procedural protections designed to prevent abuse
of the right to evict tenants." In the past, the Rent Board allowed an
owner to revoke an Ellis notice of intent to withdraw after the effective
date of withdrawal only upon a showing that one or more of the existing
tenancies was not terminated, but allowed an owner to rescind prior to the
effective date of withdrawal without any such showing. If the owner revoked
the notice of intent, the Board informed the parties that no just cause existed
under the Ellis Act for the termination of any tenancies.
Owners have recently begun to revoke notices of intent
after negotiating move-out settlement agreements in which the tenants have waived
all rights under the Rent Ordinance and the Ellis Act. The owners thereby avoid
the recordation of a
Notice of Constraints under the Act, and elimininate
the public’s right to re-rental at a controlled rent as well as the right of
the displaced tenant to reoccupancy.
The Board is considering changes to the existing administrative
policy regarding the circumstances in which revocation of an Ellis filing would
be allowed, including the following options:
(Option One) A Notice of Intent to Withdraw Residential
Units from the Rental Market may be rescinded only if the owner proves that
none of the existing tenancies was terminated as a result of the Ellis filing,
i.e. all of the existing tenancies remain in place.
(Option Two) A Notice of Intent to Withdraw Residential
Units from the Rental Market may be rescinded if the owner proves that at least
one of the existing tenancies was not terminated as a result of the Ellis filing,
i.e. one of the existing tenancies remains in place.
(Option Three) A Notice of Intent to Withdraw
Residential Units from the Rental Market may be rescinded only if the owner
proves that a certain (to be determined) % of the existing tenancies were terminated
as a result of the Ellis filing, i.e. X % of the existing tenancies remain in
place.
(Option Four) A Notice of Intent to Withdraw
Residential Units from the Rental Market may be rescinded if the owner proves
that at least one of the existing tenancies was not terminated and all of the
existing tenancies that were terminated as a result of the Ellis filing received
a fair settlement, i.e. one or more of the existing tenancies remains in place
and all other tenancies vacated pursuant to a fair settlement.
You may comment at the public hearing and/or submit
written comments. If you would like to submit written comments, it is requested
that they be received at the Department no later than 5 p.m. on Wednesday,
April 25th, so that the Commissioners can be mailed your comments
and review them prior to the hearing. Written comments may also be submitted
at the hearing. Please submit 12 copies of your comments in order facilitate
their distribution. You will be able to address the Commissioners during the
public comment period at the hearing.
DSW/Bd.Mtgs./PUBNOT/Ellis/4/01