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July 10, 2001

August 20, 1996

 

 

MINUTES OF THE REGULAR MEETING OF

THE SAN FRANCISCO RESIDENTIAL RENT

STABILIZATION & ARBITRATION BOARD,

 

Tuesday, July 10, 2001 at 6:00 p.m. at

25 Van Ness Avenue, Suite 320

 

 

 

            I.            Call to Order

 

            President Wasserman called the meeting to order at 6:10 p.m.

 

            II.            Roll Call

 

                                                                        Commissioners Present:            Aung; Gruber; Hobson; Lightner; Mosser; Wasserman.

                                                                        Commissioners not Present:            Becker; Justman; Murphy.

                                                                        Staff Present:            Grubb; Lee; Wolf.

 

                                                                        Commissioner Marshall appeared on the record at 6:25 p.m.

 

            III.            Approval of the Minutes

 

                                    MSC:            To approve the Minutes of June 19, 2001 with a correction to reflect that Senior Administrative Law Judge Tim Lee was not at the meeting.  (Lightner/Gruber:  5-0)

 

            IV.            Remarks from the Public

 

            A.  Landlord Walter Hoffman objected to the 3-minute limitation on public comments.  He told the Board that he believes that Rent Board staff gives incorrect advice to tenants, because one of his tenants failed to pay rent and had to be evicted by the Sheriff.  Mr. Hoffman also said “This is not Munich.”

 

            B.  Tenant Karen Freeman, appellee in the case at 1800-1806 – 16th Ave. (AL010111), informed the Board that her attorney, Mr. John Lauricella, could not attend the meeting.  She also said that Commissioner Lightner was present the last time this case was discussed, and she is an “interested party.”

 

            C.  Tenant Sharon Costanzo, appellant in the case at 1476 – 26th Ave. (AT010116), said that the landlords have been trying to evict her for the past year and that they are now trying to use Costa-Hawkins to raise the rent so that she will be unable to continue residing at the premises.

 

            D.  Landlord Lisa Ng, appellee in the 1476 – 26th Ave. case (AT010116), said that Sharon Costanzo was not telling the truth.  According to Ms. Ng, Ms. Costanzo had moved out last June and sublet the premises, and the landlords asked for the property back since they believed that she no longer lived there.

            E.  Kate Hague, the daughter of tenant Sharon Costanzo, said that the Board’s informational materials concerning Costa-Hawkins state that if there is an in-law unit, whether legal or illegal, a single-family dwelling is considered a two-unit building.  The information does not make any distinction if it is the tenant, rather than the landlord, who is renting out the second unit.  She asked that the information be clarified as to any exceptions to this rule.

 

            V.            Consideration of Appeals

 

            A.            1800-1806 – 16th Ave.                                    AL010111

 

      The landlord’s petition for rent increases to the tenants in two units was partially granted only as to 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 appeals, 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 in addition to receiving their share of the sale proceeds of the building.

 

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

 

      Because the parties did not timely receive the Memorandum prepared by the Administrative Law Judge, consideration of this case was continued to the August 7th meeting.

  

            B.            1801 Gough #302                                    AT010112

 

      The tenant’s petition alleging several decreased housing services was denied because the Administrative Law Judge found that the tenant had failed to meet her burden of proof.  On appeal, the tenant claims that:  her evidence was not taken into consideration; the landlord’s witness has only recently taken over management of the building; and her stove and shower do not work.

 

                                    MSC: To deny the appeal.  (Gruber/Lightner:  5-0)

 

            C.            970 Chesnut #3                                    AL010113

 

      The tenant’s petition alleging an unlawful increase in rent from $1,348.56 to $3,500.00 per month was granted, because the Administrative Law Judge found that no rent increase was warranted pursuant to Costa-Hawkins or Rules Section 6.14.  Although the tenant and his wife purchased a home in Corte Madera, the tenant resides in the Chesnut Street rental unit during the week and proved that he had not vacated.  Additionally, the landlord was found liable to the tenant in the amount of $3,820.53 due to an unlawful rent increase in 1989.  On appeal, the landlord maintains that:  the 1989 rent increase was an approved capital improvement passthrough and, therefore, should not have been determined to be null and void; the rent rollback is barred by the doctrine of laches; the Decision omits necessary findings regarding the tenant’s principal place of residence; the tenant failed to meet his burden of proof, because his evidence pre-dates the purchase of the home in Marin County; and the landlord has no way to disprove the tenant’s contentions regarding his personal circumstances.

 

                                    MSC: To accept the appeal and remand the case to the Administrative Law Judge on the record on the issue of the rent history; a hearing will be held only if necessary.  The appeal is denied as to all other issues without prejudice to the landlord filing a petition seeking a determination as to whether the tenant is a “Tenant in Occupancy” pursuant to new Rules and Regulations Section 1.21.  (Lightner/Gruber:  4-1; Hobson dissenting)

 

                        D.  1000 Howard #305                                    AT010115

 

      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 appeals, claiming that the amounts granted are inadequate, considering the nature of the conditions.

 

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

 

                        E.  1476 – 26th Ave.                                    AT010116

 

      The landlord filed a petition seeking a determination of whether the subject property is exempt as a single family dwelling pursuant to Costa-Hawkins.  The Administrative Law Judge found that, since it was the tenant who changed the use of the premises by renting out the first floor, the structure remained a single family dwelling separately alienable from any other dwelling unit and therefore exempt from the rent increase limitations of the Ordinance.  The tenant appeals, asserting that:  the in-law unit on the property is a fully habitable unit, which meets the definition of a second unit under the California Government Code; the landlords knew that both units in the building would be used as living space at the time the lease was signed; the use of the building should determine its status; the landlords are currently attempting to alter the status of the in-law unit by obtaining a permit to remove the stove and doorbell; and the proposed rent increase constitutes an “economic eviction.”

 

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

 

            VI.            Old Business

 

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

 

            The Board continued their discussion of a proposal by Commissioner Lightner that would require that master tenants pay an equitable portion of the rent for the unit.  Commissioner Marshall wanted to be sure that, in establishment of the initial base rent, additional amounts paid for utilities could be accounted for.  With two minor amendments to the language, the Board voted as follows:

 

                                    MSC: To put proposed new Rules and Regulations Section 6.15C(3), as amended, out for Public Hearing.  (Lightner/Gruber:  5-0)

 

      The Public Hearing will be held on August 21st at 6:00 p.m. in Room 406 at City Hall.  The proposed language reads as follows:

 

Section 6.15C(3):

 

Partial Sublets.  In the event a master tenant does not sublease the entire rental unit, as anticipated in Section 37.3 (c), then the master tenant may charge the subtenant(s) no more than the subtenant(s) proportional share of the total current rent paid to the landlord by the master tenant for the housing and housing services to which the subtenant is entitled under the sub-lease. 

 

(a)   The allowable proportional share of total rent may be calculated based upon the square footage shared with and occupied exclusively by the subtenant; or an amount substantially proportional to the space occupied by and shared with the subtenant (e.g. three persons splitting the entire rent in thirds) or any other method that allocates the rent such that the subtenant pays no more to the master tenant than the master tenant pays to the landlord for the housing and housing services to which the subtenant is entitled under the sublease. In establishing the proper initial base rent, additional housing services (such as utilities) provided by, or any special obligations of, the master tenant, or evidence of the relative amenities or value of rooms, may be considered by the parties or the Rent Board when deemed appropriate.  Any methodology that shifts the rental burden such that the subtenant(s) pays substantially more than their square footage portion, or substantially more than the proportional share of the total rent paid to the landlord, shall be presumed to be in excess of the lawful limitation. 

 

(b)   The master tenant or subtenant(s) may petition the Board for an adjustment of the initial rent of the subtenant.   

 

(c)   If a portion of a capital improvement passthrough or a utility increase is allocated to a subtenant, it must be separately identified and not included in the subtenant’s base rent.  Such amounts are subject to the rules herein and must be discontinued or recalculated pursuant to the applicable rules.  Any amount that is improperly calculated or not properly discontinued shall be disallowed.        

 

(d)   In the event of any dispute regarding any allowable increase, or allocation, or any rental amount paid that is not rent, the subtenant may file a claim of unlawful rent increase to have the matter resolved between the subtenant and master tenant, as if the master tenant were the owner of the building.  Disallowed or improper increases shall be null and void.    

 

(e)   For any sublease entered into on or before _____________ [effective date of new rule] where the sublease rent was not calculated as provided for herein, the master tenant shall have six months from the effective date of this regulation to notice an adjusted proper rent and refund any overpayments paid after the effective date of this section.  No petitions alleging overpayments may be filed during this time.

 

(f)     For any sublease entered into after ____________  [effective date of new rule] where the sublease rent was not calculated as provided for herein, the portion of the subtenant’s rent that is in excess of the amount allowed pursuant to this Section 6.15C(3) shall be null and void.

 

            IV.            Remarks from the Public (cont.)

 

            F.  Sharon Costanzo, tenant appellee in the case at 1476 – 26th Ave. (AT010116), corrected the Board by pointing out that she had submitted a diagram that shows that the downstairs unit has a full, working kitchen.  Ms. Costanzo stated that she had a “good rapport” with the landlords until, she believes, they realized that because of her age and ill health it would be hard to get rid of her.  She decried the “unjust” decision of the Board.

 

            G.  Kate Hague, Sharon Costanzo’s daughter, told the Board that the agency “owes it to the public” to make the law clear.

 

            H.  Landlord Walter Hoffman expressed his opinion that the rent for the premises at 1476 – 26th Ave. is a “giveaway.”  After reviewing the file, Mr. Hoffman concluded that the tenant had violated the rental agreement and was “taking advantage” of the landlord.

 

            VII.            New Business

 

                        A.  Litigation Update

 

      Senior Administrative Law Judge Tim Lee went over a Memorandum he had prepared, outlining the status of pending and recently decided writs and affirmative lawsuits against the Board.

 

                        B.  Rule-Making Authority of the Rent Board Commissioners

 

      The Commissioners briefly discussed a request by Supervisor Gonzales that the Office of the City Attorney draft legislation that would restrict the Board’s rule-making powers.  Executive Director Grubb will attempt to find out the status of this request and Commissioner Lightner will draft a letter opposing any such proposal for the Board’s consideration at the next meeting.

 

            VIII.            Calendar Items

 

            July 17th, 24th & 31st, 2001 - NO MEETINGS

 

            August 7, 2001

            8 appeal considerations  (2 cont. from 7/10/01)

            Old Business: 

                  A.  Proposed New Rules Section 6.15C(3)

                  B.  Rule-Making Authority of the Rent Board Commissioners

 

            IX.            Adjournment

 

      President Wasserman adjourned the meeting at 8:00 p.m.


Last updated: 6/5/2012 11:32:43 AM