February 02, 1999B>
MINUTES OF THE REGULAR
MEETING OF
THE SAN FRANCISCO RESIDENTIAL
RENT
STABILIZATION & ARBITRATION
BOARD,
Tuesday, February 2, 1999 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 6:12 p.m.
II. Roll Call
Commissioners Present: Becker;
Bierly; Gruber; Justman; Lightner; Murphy; Wasserman.
Commissioners not Present: Marshall.
Staff Present: Grubb; Wolf.
Commissioner Mosser appeared on the record
at 6:25 p.m.; Commissioner Moore arrived at 6:30 p.m.; and Commissioner
Justman went off the record at 7:45 p.m.
III. Remarks from the Public
A tenant in the audience asked several
questions regarding provisions of the Rules and Regulations pertaining
to capital improvement passthroughs and rent increases based on increased
operating expenses. He expressed his belief that a new owner should not
be allowed to compare their expenses with those of a previous owner. A
tenant stated that capital improvement passthroughs should be abolished,
or split 50-50 between the landlord and tenant. She also suggested that
a sign be put up on the Board’s meeting room, so that it is easier for
the public to find. Another tenant told the Board that she is overwhelmed
by the prospect of defending against a capital improvement passthrough
for a building of approximately 70 units.
IV. Old Business
Costa-Hawkins (Civil Code Section
1954.53)
The Board continued their discussion
of issues associated with the implementation of the Costa-Hawkins Rental
Housing Act of 1995, along with Deputy City Attorney Marie Blits. Ms. Blits
went through the re-draft she had done of suggested amendments to the Rent
Ordinance and proposed Rules and Regulations as the result of the Board’s
input at the January 5th meeting. Toward the end of the discussion, it
appeared that the following issues remained unresolved: whether "anniversary
dates" will still apply to units otherwise exempt pursuant to Costa-Hawkins;
how to treat rooms in a single family dwelling that are not separately
alienable, but are rented out as separate rental units; the exemption for
Artist Live/Work units contained in Rules Section 1.17(g), which adds a
requirement that there had been no residential tenancy between June 13,
1979 and the date of issuance of the Certificate of Occupancy, whereas
Costa-Hawkins appears to mandate exemption if the Certificate was issued
after February 1, 1995; the issue of vacancy control or vacancy decontrol/recontrol
when prior tenancies were terminated pursuant to 30-day notice or when
there are long-standing health and safety violations on the premises; and
the Sections of Costa-Hawkins that pertain to subletting and assignment,
and how these relate to Rules and Regulations Section 6.14. It was suggested
that the landlord and tenant communities each draft suggested language
on certain of these issues; Ms. Blits graciously offered her assistance.
Discussion of these matters will be continued at the Board meeting on March
16th or, at a Special Meeting on March 9th, if necessary.
V. Communications
The Board received the following communications:
A. A letter from Ted Gullickson of the
Tenants’ Union advising the Board that the Tenants’ Union disagrees with
the interpretation from the Office of the City Attorney that the passage
of Proposition G on the ballot changed the ownership interest required
for owner-occupancy eviction back to 25% from the 50% requirement contained
in the Bierman legislation; Rent Board staff will advise the public that
there is a difference in interpretation on this issue.
B. The office workload statistics for the
month of November.
C. A laudatory letter to the Mayor from
a tenant who recently faced eviction, and received competent and professional
assistance from several members of the Rent Board staff; and a follow-up
letter from Executive Director Grubb to the counseling staff, thanking
them for the exemplary service that they provide to the public.
D. Legislation recently introduced by Supervisor
Bierman that would require a Conditional Use Permit for the conversion
of residential units in buildings of three or more units to non-rental
use.
VI. Director’s Report
Executive Director Grubb went over proposed
budget enhancements for the fiscal year 1999-2000, due to the 79% increase
in workload over the last 3 years. In order to reduce the current hearing
backlog and provide more timely service to the public, Mr. Grubb is requesting
one additional counselor position; four additional permanent hearing officer
and three temporary hearing officer positions (two current temporary positions
would be made permanent); and an additional Senior Hearing Officer position.
In order to fund the new positions, a $5.00 increase in the Rental Unit
Fee would be required, but the fee would have to be collected from the
interest paid on the security deposit, and landlords would be allowed to
"bank" the fee. There was a heated discussion of the mandatory deduction
from security deposit interest requirement, as Commissioner Lightner felt
strongly that landlords who were currently billing separately for the fee
ought not to be penalized.
VII. New Business
Commissioner Lightner distributed a draft
amendment to Rules and Regulations Section 7.14, which would allow a landlord
an average of the interest rates actually paid and "reasonably foreseeable"
future rates on a variable interest rate loan for capital improvement work,
rather than restricting the landlord to the imputed interest rate, which
is current policy. This issue will be discussed at the next Board meeting.
VIII. Calendar Items
February 9, 1999 - NO MEETING
February 16, 1999
7 appeal considerations (1 cont. from
1/5/99)
Old Business:
A. Interest Rate When Capital Improvement
Work is Financed with a Variable Rate Mortgage
B. Rental Unit Fee
New Business: Discussion of Issues
Possibly Warranting Amendments to the Ordinance and/or Rules and Regulations
IX. Adjournment
President Wasserman adjourned the meeting
at 9:15 p.m.