February 16, 1999B>
MINUTES OF THE REGULAR
MEETING OF
THE SAN FRANCISCO RESIDENTIAL
RENT
STABILIZATION & ARBITRATION
BOARD,
Tuesday, February 16, 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 6:08 p.m.
II. Roll Call
Commissioners Present: Becker;
Gruber; Lightner; Moore; Wasserman.
Commissioners not Present: Bierly.
Staff Present: Wolf.
Commissioner Marshall appeared on the
record at 6:10 p.m.; Commissioner Mosser appeared at 6:16 p.m.; Commissioner
Murphy arrived at the meeting at 6:23 p.m.; and Commissioner Justman arrived
at 7:10 p.m.
III. Approval of the Minutes
MSC: To approve the Minutes of January
19th and February 2, 1999.
(Becker/Gruber: 4-0)
IV. Remarks from the Public
A tenant asked several questions regarding
provisions of the Rent Ordinance and Rules and Regulations pertaining to
capital improvement passthroughs and rent increases based on increased
operating expenses, expressing his belief that the Board was "accomplishing
their intent to unjustly enrich owners." The landlord involved in the case
at 1201-07 46th Ave. (T001-34A) informed the Board that the tenant in the
case does not drive nor own a car; therefore, the landlord requested that
the Board give him back "jurisdiction" over the garage at the premises.
In accordance with Rules and Regulations
Section 2.13(e), the Board passed the following motion:
MSC: To adopt a "3-Minute Speakers’ Rule"
for the "Remarks from the Public" portion of the Agenda. (Murphy/Gruber:
5-0)
V. Consideration of Appeals
A. 2471 Bryant St. T001-26A
(cont. from 1/5/99)
The tenant’s petition alleging substantial
decreases in housing services was granted, in part, and the landlord was
found liable to the tenant in the amount of $7,432.50 due to long-term
habitability problems on the subject premises. The landlord failed to appear
at the properly noticed hearing. On appeal, the landlord claims that he
did not attend the hearing due to a family emergency. He also maintains
that: the information provided by the tenant at the hearing was false;
the lease states that the garage is the tenant’s responsibility; the bedroom
heater is not working because the tenants placed a large dresser in front
of it; the carpet and walls were damaged by the tenant; and the tenant
refused the owner access to the premises when he attempted to effectuate
repairs.
After discussion, it was the consensus
of the Board to continue consideration of this case to the meeting on January
5, 1999, in order for staff to contact the landlord and have him: explain
and document the nature of the family emergency, under penalty of perjury;
and explain why the new property manager failed to appear in his stead.
After discussion of the submission received from the landlord, it was the
consensus of the Board to further continue this case in order to provide
the landlord a final opportunity to explain the exact nature of the "emergency"
that prevented his attendance at the hearing, including documentation,
and under penalty of perjury.
MSC: To accept the appeal and
remand the case for a new hearing. (Wasserman/Gruber: 3-2; Becker, Marshall
dissenting)
B. 1201-07 46th Ave. T001-34A
The tenant’s petition alleging unlawful
rent increases was granted and the landlord was found liable to the tenant
in the amount of $7,700.62. The landlord did not appear at the hearing
and provides evidence on appeal that he was out of the country at the time.
The landlord’s claim on appeal is that the seemingly excessive rent increases
were, in actuality, allocated to the garage, which was rented separately.
MSC: To accept the appeal and remand
the case for a new hearing. (Wasserman/Gruber: 5-0)
C. 25 Ulloa St. T001-35A; T001-43R
The tenants’ petition alleging substantial
decreases in housing services was granted, in part, and the landlord was
found liable to the tenants in the amount of $3,565.72 due to various habitability
problems on the premises. On appeal, the landlord claims that: it was not
the landlord who decreased services but, rather, the conditions were caused
by the tenants; the values placed on the decreased services were arbitrary
and without substantiation; factual evidence provided by the landlord was
ignored; the tenants should have raised the instant claims in a prior petition
before the Board; and the tenants refused to provide the landlord access
to the premises. The tenants also appeal the hearing officer’s determination
that the landlord had properly restored the prior base rent amount because
the tenants’ right to sublet the premises had been reinstated, claiming
that this issue was not properly before the hearing officer.
MSC: To deny both the landlord’s and
tenants’ appeals. (Lightner/Gruber: 5-0)
D. 1750 Franklin St. T001-32A
The landlords’ petition for certification
of capital improvement costs and rent increases based on increased operating
expenses was granted, in part. The landlords appeal the denial of the costs
of the installation of paint grade stucco medallions on the exterior bays
of the windows and window shutters because the hearing officer found these
items to not constitute capital improvements. On appeal, the landlord asserts
that these amenities enhance the character and charm of the building, making
the rental income go up and therefore increasing the value of the building,
which by definition makes them capital improvements.
MSC: To deny the appeal. (Becker/Marshall:
5-0)
E. 1730 Vallejo St. #1 T001-33A
The tenant’s petition alleging decreased
housing services was granted and the landlord was found liable to the tenant
in the amount of $280.00 ($40.00 per month) for fumes emanating from garbage
cans one floor below her window. The landlord failed to appear at the hearing
and alleges on appeal that his agent, the resident manager, did not receive
notice of the hearing.
MSC: To recuse Commissioner Becker
from consideration of this appeal. (Moore/Wasserman: 5-0)
MSC: To accept the appeal and remand the
case for a new hearing with the recommendation that the parties settle
this matter with the assistance of the hearing officer. (Lightner/Gruber:
5-0)
F. 338 Jersey St. T001-42R
The landlord’s petition for a rent increase
based on comparable rents was granted, resulting in a rent increase from
$350.00 to $1,050.00 per month. The tenant, who is the grandson of the
prior owner of the building, appeals the decision on the grounds of financial
hardship; alleges that the hearing officer failed to consider that housing
services have been reduced; and avers that the condition of the unit is
"poor" instead of "fair."
MSF: To deny the appeal. (Gruber/Lightner:
2-3; Becker, Marshall, Wasserman dissenting)
MSC: To accept the appeal and remand the
case for a hearing on the tenant’s claim of financial hardship. (Marshall/Becker:
3-2; Gruber, Lightner dissenting)
G. 71 Sharon St.
T001-45R
The tenant’s petition alleging decreased
housing services and the landlord’s failure to repair was dismissed due
to her failure to appear at the properly noticed hearing. On appeal, the
tenant claims to have faxed a request for postponement prior to leaving
the country.
MSC: To accept the appeal and remand
the case for a new hearing. (Becker/Marshall: 5-0)
VI. Communications
The Commissioners received correspondence
concerning cases on the calendar.
VII. Old Business
A. Interest Rate When Capital Improvement
Work is Financed With a Variable Rate Mortgage
The Board continued their discussion
of amending Rules and Regulations Section 7.14 in order to allow landlords
an interest rate more commensurate with the cost of their financing when
they take out a variable rate loan for capital improvement work, rather
than restricting them to the imputed interest rate, which is current policy.
Drafts authored by Commissioners Lightner and Marshall were discussed and
will be re-drafted for discussion at the next meeting.
B. Rental Unit Fee
The Deputy Director reported that Executive
Director Grubb was invited to speak at a meeting of the Coalition for Better
Housing (C.B.H.) regarding the requested increase in the Rental Unit Fee
in order to fund the additional staff positions needed to handle the greatly
increased workload. A vote was taken and a majority of those present endorsed
the increase in the fee from $10.00 to $15.00, with the provision that
the fee would have to be collected from the interest paid by the landlord
on the security deposit. Commissioner Mosser, who was in attendance at
the C.B.H. meeting, advised the Deputy Director of an alternate proposal,
wherein landlords who are current in payment of security deposit interest
would be allowed to continue to bill separately for the Rental Unit fee.
IV. Remarks from the Public (cont.)
The landlord in the case concerning 25
Ulloa St. (T001-35A) inquired as to whether the Board continues to have
jurisdiction after a tenant vacates the premises.
VIII. New Business
In order to conform the Rent Ordinance
to the requirements of the Costa-Hawkins legislation, the Rent Board will
be going to the Board of Supervisors with a package of suggested amendments.
Therefore, Commissioner Gruber asked that the Deputy Director re-issue
a list of issues that may warrant amendments to the Ordinance and/or Rules
and Regulations. After a brief discussion, it was agreed that this issue
will be continued to the next meeting.
IX. Calendar Items
February 23, 1999 - NO MEETING
March 2, 1999
8 appeal considerations
Old Business:
A. Interest Rate When Capital Improvement
Work is Financed With a Variable Rate Mortgage
B. Rental Unit Fee
C. Discussion of Issues Possibly Warranting
Amendments to the Ordinance and Rules and Regulations
March 9, 1999 - NO MEETING
X. Adjournment
President Wasserman adjourned the meeting
at 8:17 p.m.