Tuesday, January 18, 2000 at 6:00 p.m. at
25 Van Ness Avenue, Suite 70, Lower Level
I. Call to Order
Vice-President Marshall called the meeting to order at 6:10 p.m.
II. Roll Call
Commissioners Present: Gruber; Hobson; Lightner;
Marshall.
Commissioners not Present: Becker; Bierly; Mosser;
Murphy; Wasserman.
Staff Present: Grubb; Wolf.
Commissioner Justman appeared on the record at
6:27 p.m.
III. Approval of the Minutes
MSC: To approve the Minutes of January 4, 2000.
(Gruber/Lightner: 4-0)
IV. Consideration of Appeals
A. 768 - 9th Ave. #4 U001-48A
The tenants petition alleging substantial decreases in housing
services during a period of construction work was denied. The landlords
consolidated petition for certification of capital improvement costs was granted.
However, the hearing officer determined that a rent increase given in 1993
exceeded limitations and the landlord was found liable to the tenant in the
amount of $400.61. On appeal, the landlord asks that the Board reconsider
his liability for the one unlawful increase, since he has charged the tenant
less than the maximum allowed throughout the tenancy.
MSC: To deny the appeal. (Lightner/Gruber: 4-0)
B. 311 - 11th Ave. U001-69R
The landlords petition for certification of the cost of seismic
retrofit of the building was granted, resulting in a $25.44 monthly passthrough
to the tenants in 8 units. One tenant appeals the decision on the grounds
of financial hardship; one other tenant asserts that the Boards hardship
criteria is too stringent, and that a tenants rent should not exceed
1/4 of their monthly income. All of the tenants claim that there were insufficient
invoices provided to substantiate the costs of the work; and that, for purposes
of allocation, a hallway was excluded when assessing the size of a commercial
unit in the building.
MSC: To grant the appeal of the tenant in unit #9 and remand
the case for a hearing on the tenants claim of financial hardship.
(Gruber/Hobson: 4-0)
MSC: To deny the individual appeal of the tenant in unit #5.
(Gruber/Lightner: 4-0)
MSC: To deny the joint appeal filed by the tenants in eight
units. (Lightner/Gruber: 3-1; Hobson dissenting)
C. 434 Hickory St. U001-47A
Two tenant petitions alleging substantially decreased housing services
were granted and the landlord was found liable to one of the tenants in the
amount of $9,920.00 and $9,180.00 to the other. The landlord appeals as to
one of the units only, asserting that: the tenant failed to give notice to
the landlord regarding the defective conditions in his unit and communicated
only satisfaction with the premises; the tenant had been the on-site manager
of the building, and is estopped from claiming rent reductions during that
period of time; any claims from the period prior to February, 1996 were dissolved
pursuant to the landlords filing for bankruptcy at that time; the Notice
of Violation relied on by the hearing officer pre-dates the tenancy; and the
tenants claims are barred by the applicable Statute of Limitations.
MSC: To accept the appeal and remand the case to the hearing
officer for a hearing on the bankruptcy issue and to explore which,
if any, of the repairs were part of the tenants managerial
responsibilities. Lightner/Gruber: 3-2; Hobson, Marshall dissenting)
D. 725 Monterey Blvd. U001-46A
The landlords petition for rent increases for nine of eleven units
based on increased operating expenses was denied due to insufficient documentation
of the aggregate expenses for the building over a two-year period. A consolidated
petition for certification of capital improvement costs for ten of the eleven
units was granted, in part. On appeal, the landlord provides copies of two
post-hearing submissions documenting capital improvement costs which were
not received by the hearing officer.
MSC: To accept the appeal and remand the case to the hearing
officer to examine the additional evidence submitted with the landlords
appeal; a hearing will be held only if necessary.
(Lightner/Gruber: 5-0)
E. 1615 Jones St. U001-50A
The tenants petition alleging decreased housing services was granted,
in part, and the landlord was found liable to the tenant in the amount of
$250.00 due to a cracked and peeling kitchen ceiling and walls. The landlord
appeals on the grounds that: no capital improvement costs have been passed
through to the tenant; the tenant failed to provide access in order for the
landlord to effectuate the repairs; the kitchen was still available for the
tenants use; the base rent amount in the Decision is incorrect; and,
in a 1992 case, non-repair of a kitchen ceiling was valued at only $20.00
per month.
MSC: To deny the appeal but to clarify that the Decision of
Hearing Officer does not take away any banked increases available
to the landlord for prospective imposition at a later date. (Lightner/Hobson:
5-0)
F. 381 - 22nd Ave. U001-51A
The tenants petition alleging a substantial decrease in housing
services due to the landlords failure to approve a replacement roommate
was granted and the landlord was found liable to the tenants in the amount
of $2,688.00. On appeal, the landlord asserts that: the hearing officer was
mistaken in finding that the lease agreement between the parties expressly
stated that three persons could occupy the premises; the "Leno"
legislation, which allows for a decrease in services rent reduction when a
landlord unreasonably withholds consent to subletting even in the presence
of an absolute prohibition, was not in effect at the time the instant petition
was filed; and awarding penalties for the landlords statement that the
lease prohibited subletting violates the landlords free speech rights.
MSC: To accept the appeal and remand the case to the hearing
officer on the record to make appropriate adjustments to the decision
due to the effective date of the Leno legislation. (Lightner/Gruber:
4-1; Hobson dissenting)
G. 400 Hyde St., Apt. 507 U001-52A
The landlords appeal was filed two days late because the landlord
was out of town for the Thanksgiving holiday.
MSC: To find good cause for the late filing of the appeal.
(Gruber/Hobson: 5-0)
This case arose pursuant to a landlord petition for certification of
capital improvement costs, which was granted and resulted in a monthly passthrough
to the tenants in the amount of $14.25. One tenant appealed the decision on
the grounds of financial hardship. The appeal was accepted and remanded for
a hearing on the hardship claim. In the Decision on Remand, the hearing officer
found sufficient hardship to warrant deferral of the passthrough for a one
year period from the date of issuance of the Decision, in order for the tenants
medical condition to improve or for the tenant to avail himself of public
benefits to which he would be entitled. The landlord appeals the remand decision,
asserting that the hearing officer granted the tenant too long a time period
to apply for Social Security Disability benefits and/or Section 8, and that
the effective date of the passthrough (August 1, 1998) should be reinstated.
MSC: To deny the appeal. (Hobson/Marshall: 3-2; Gruber, Lightner
dissenting)
H. 3015 Van Ness Ave. #6 U001-77R
The tenants petition alleging an unlawful increase in rent from
$1295.00 to $1395.00 after less than one year was denied. The hearing officer
found that the relevant lease provided for a $100 monthly discount as long
as the tenant was employed by the landlord and that revocation of the discount
after the tenant had terminated his employment did not constitute a rent increase.
The tenant appeals, claiming that: the landlord failed to prove that $1395
constituted the original base rent for the unit; the increase violates the
Ordinance in that the amount is excessive and it occurred prior to one year
of residency; the tenant felt coerced to sign the lease agreement; and, since
his employment was not tied to the building in any way, his rental and work
situations should not be linked.
MSC: To deny the appeal. (Gruber/Lightner: 4-1; Marshall dissenting)
I. 2028 Broderick St. #A U001-49A
The tenants petition alleging a substantial decrease in housing
services because of second-hand smoke coming into her unit from the unit below
was granted, and the landlord was found liable to the tenant in the amount
of $520.00 ($40 per month). On appeal, the landlord claims that: the tenant
failed to prove that the problem exists; the landlord has been in the tenants
unit and did not smell cigarette smoke; the landlord provided documentary
evidence from a licensed plumbing and electrical contractor; and the landlord
and his witness provided credible testimony, but the hearing officer only
found the tenant to be credible.
MSC: To accept the appeal and remand the case to the hearing
officer to determine whether the ventilation system is connected
such that smoke could and does travel from the unit below to the
tenants unit; a hearing will be held only if necessary.
(Hobson/Marshall: 5-0)
V. Communications
In addition to correspondence concerning cases on the calendar, the Commissioners
received the following communications:
A. The office workload statistics for the month of November, 1999.
B. A new staff roster.
VI. Directors Report
Executive Director Grubb informed the Board that legislation raising
the relocation payments to low-income tenants displaced pursuant to an Ellis
eviction to $4,500.00 will take effect on January 29th, as will legislation
changing the "Hearing Officer" job title to "Administrative
Law Judge."
VII. Remarks from the Public
The landlord involved in the appeal concerning 1615 Jones Street (U001-50A)
requested clarification regarding his right to banked rent increases and expressed
his opinion that the issue of second-hand smoke seems like a "nuisance
case." The landlord involved in the hardship appeal concerning 400 Hyde
Street (U001-52A) asked that the Board explain what deferral of a capital
improvement passthrough means.
VIII. Calendar Items
January 25, 2000
Special Legislative Session: Rules & Regs. Section 6.14 (Costa-Hawkins)
February 1, 2000
11 appeals
IX. Adjournment
Vice-President Marshall adjourned the meeting at 7:46 p.m.