March 24, 1998

March 5, 1998

THE RENT BOARD COMMISSIONERS INVITE THE PUBLIC TO COMMENT ON PROPOSED CHANGES TO THE RULES AND REGULATIONS GOVERNING THE RESIDENTIAL RENT STABILIZATION AND ARBITRATION ORDINANCE, CHAPTER 37 OF THE SAN FRANCISCO ADMINISTRATIVE CODE.

THE COMMISSION IS TAKING PUBLIC COMMENT ON THE ATTACHED LANGUAGE WHICH AFFECTS TWO DIFFERENT SECTIONS. THE FIRST PROPOSED AMENDMENT IS TO SECTION 6.13 AND IS INTENDED TO CLARIFY EXISTING RENT BOARD POLICY CONCERNING THE PROHIBITION AGAINST CHARGING FOR ADDITIONAL TENANTS. SUBSECTION (a) IS SLIGHTLY AMENDED AND SUBSECTION B IS BEING DELETED IN ORDER TO ELIMINATE MISLEADING LANGUAGE THAT MIGHT HAVE BEEN CONSTRUED TO PERMIT CHARGING OF ADDITIONAL RENT FOR ADDITIONAL TENANTS TO AN EXISTING LEASE OR RENTAL AGREEMENT. BOTH THE CURRENT SECTION AND THE PROPOSED SECTION ARE PROVIDED HERE FOR COMPARISON PURPOSES. THIS AMENDMENT IS CONSIDERED BY THE COMMISSION TO BE A NON-SUBSTANTIVE AMENDMENT FOR CLARIFICATION PURPOSES ONLY AND DOES NOT ALTER ANY EXISTING POLICY OF THE RENT BOARD.

THE SECOND PROPOSED AMENDMENT IS THE ADDITION OF SECTION 6.15. THIS SECTION IS ENTIRELY NEW AND IS INTENDED TO CLARIFY ISSUES CONCERNING SUBLETTING AND ASSIGNMENTS AND THE RIGHTS AND RESPONSIBILITIES OF BOTH TENANTS AND LANDLORDS. IT ALSO REQUIRES THAT A MASTER TENANT DIVULGE THE CURRENT RENT WHEN NEW SUBTENANTS ARE BROUGHT IN.

You may either 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, March 18, 1998, 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.

CURRENT TEXT OF 6.13 READS AS FOLLOWS:

Section 6.13 Agreements to Pay Additional Rent for Newborn Children
(Adopted April 8, 1986)

1. No extra rent may be charged solely for the addition of a newborn child to an existing tenancy, regardless of the presence of a rental agreement or lease which specifically allows for a rent increase for additional tenants. Such provisions in written or oral rental agreements or leases are deemed to be contrary to public policy.

2. Section 6.13(a) shall not be construed, by implication or otherwise, to establish a rule for cases involving other children, roommates or any other additional tenants.

PROPOSED TEXT FOR 6.13 WOULD READ AS FOLLOWS:

Section 6.13 Agreements to Pay Additional Rent for Newborn Children
(Adopted April 8, 1986)

1. No extra rent may be charged solely for an additional occupant to an existing tenancy (including a newborn child), regardless of the presence of a rental agreement or lease which specifically allows for a rent increase for additional tenants. Such provisions in written or oral rental agreements or leases are deemed to be contrary to public policy.

Proposed New Regulation 6.15 (Note: This Section is entirely new)

Subletting and Assignment

1. For tenancies entered into after the date of adoption of this Section 6.15, where a lease or rental agreement contains an enforceable absolute prohibition against sublet or assignment, breach of such covenant may constitute a ground for termination of tenancy pursuant to Section 37.9(a)(2) only if such prohibition was adequately disclosed to and agreed to by the tenant at the commencement of the tenancy. For purposes of this subsection, adequate disclosure shall include, but not be limited to, satisfaction of the following requirement: (i) the prohibition against sublet or assignment is set forth in enlarged or boldface type in the lease or rental agreement and is separately initialed by both landlord and tenant; and/or (ii) the landlord has provided the tenant with a written explanation of the meaning of the absolute prohibition, either as part of the written lease or rental agreement, or in a separate writing.

2. Where a lease or rental agreement, whether oral or written, permits sublet or assignment, or where an absolute prohibition against sublet or assignment has been waived, and the lease or rental agreement specifies a number of tenants to reside in a unit, or where the open and established behavior of the landlord and tenants has established that the tenancy includes more than one tenant, the replacement of one or more of the tenants by an equal number of tenants, subject to subsection (c) below, shall not constitute a breach of the lease or rental agreement for purposes of termination of tenancy under Section 37.9(a)(2) of the Ordinance.

3. Where a lease or rental agreement requires a landlord’s consent to sublet or assignment, failure to obtain such consent shall not constitute a breach of the lease or rental agreement for purposes of eviction under Section 37.9(a)(2), where the landlord has unreasonably withheld consent to such change; provided, however, that this subsection shall not apply to assignment of the entire tenancy or subletting of the entire unit for longer than _____* months. Withholding of consent by the landlord shall be deemed to be unreasonable if the tenant has met the following requirements:
   1. The tenant has requested in writing the permission of the landlord to the sublease or assignment prior to the commencement of the proposed new tenant’s or new subtenant’s occupancy of the unit.

   2. The proposed new tenant or new subtenant, if requested by the

      * number of months (between 1 and 12) to be determined by Board after public hearing.
      landlord, has completed the landlord’s standard form application, or, in the event the landlord fails to provide an application or has no standard form application, the proposed new tenant or new subtenant has provided sufficient information to allow the landlord to conduct a typical background check, including credit information, income information, references, and background information.

   3. The tenant has provided the landlord five (5) business days to process the proposed new tenant’s or new subtenant’s application.

   4. The proposed new tenant or new subtenant meets the regular reasonable application standards of the landlord.

   5. The proposed new tenant or new subtenant has agreed to sign and be bound by the then current rental agreement between the landlord and the tenant.

   6. The tenant has not, without good cause, requested landlord consent to a new tenant or new subtenant more than one time per tenant residing in the unit during the previous 12 months.

4. Where a lease or rental agreement, whether oral or written, permits assignment with landlord consent, or where an absolute prohibition against sublet or assignment has been waived, and the lease or rental agreement specifies the number of tenants to reside in a unit, or where the open and established behavior of the landlord and tenants has established that the tenancy includes more than one tenant, failure of the landlord to consent to the replacement of one or more of the tenants by an equal number of tenants, subject to subsection (c) above, may constitute a decrease in housing services pursuant to Section 10.10 of these Regulations.

5. nothing in this Section shall prevent the landlord from providing a replacement new tenant or new subtenant with written notice as provided under Section 6.14 that the tenant is not an original tenant as defined in Section 6.14(a) and that when the last of the tenant(s) who meet the latter definition vacates the premises, a new tenancy is created for purposes of determining the rent under the Rent Ordinance.

6. A landlord who is not an owner of record of the property and who resides in the same rental unit with his or her tenant (a "Master Tenant") may evict said tenant without just cause as required under Section 37.9(a) only if, prior to commencement of the tenancy, the Master Tenant informs the tenant in writing that the tenancy is not subject to the just cause provisions of Section 37.9. In addition, a Master Tenant shall disclose in writing to a tenant prior to commencement of the tenancy the amount of rent the Master Tenant is obligated to pay to the owner of the property.

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