September 21, 1999B>
MINUTES OF THE REGULAR MEETING OF
THE SAN FRANCISCO RESIDENTIAL RENT
STABILIZATION & ARBITRATION
BOARD,
Tuesday, September 21, 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 6:05 p.m.
II. Roll Call
Commissioners Present: Becker; Bierly; Gruber;
Marshall; Murphy; Wasserman.
Commissioners not Present: Lightner; Mosser.
Staff Present: Grubb; Wolf.
Commissioner Justman appeared on the record at 6:40 p.m. Commissioner
Becker appeared by telephone hookup.
III. Approval of the Minutes
MSC: To approve the Minutes of September 9, 1999.
(Marshall/Gruber: 5-0)
IV. Remarks from the Public
Tenant Vesta Kirby, who filed a tenant hardship appeal in the case concerning
1616 Taylor Street #7 (U001-21R), wanted to clarify that the "art"
category on her Hardship Application meant art supplies. Russell Ledwell asked
that, when an appeal is denied, the Notice of Action on Appeal state the reason
for the denial.
V. Consideration of Appeals
A. 1150 Valencia St. T001-79A
(cont. from 8/17/99)
The tenants’ petition alleging decreases in housing services was
granted, and the landlord was found liable to the tenants in the amount of
$1,282.50 due to noise and intrusions from a construction project in the commercial
unit below the tenant’s unit. The landlord appeals, claiming that: the
hearing officer was biased in favor of the tenants and gave no weight to testimony
and evidence entered by the landlords; the fact that no other tenants in the
building filed petitions proves that the tenants’ claims are exaggerated;
the tenant unlawfully entered the construction zone and harassed the workers;
and there is no economic benefit to the landlord as a result of the construction.
At the meeting on August 17th, the Commissioners voted to accept the
appeal and remand to the hearing officer on the record for clarification only
as to why the value for the decreased service was $250 instead of $190. This
was to be done as either a Memorandum to the Commission or as a technical
correction on the record. Having received an explanatory Memo from the hearing
officer, the Board passed the following motion:
MSC: To deny the appeal. (Becker/Marshall: 5-0)
B. 6678 Third St. #D & #C T002-19R & U001-20R
The landlord’s petition for certification of capital improvement
costs to 3 out of 4 Newly Covered Units was granted, in part. Two tenants
appeal the decision, asserting that: the workers were paid in cash, so there
is no written documentation of the labor costs; the landlord has failed to
provide signed contracts or canceled checks substantiating the costs claimed;
and the estimator’s valuation that the costs were reasonable does not
prove that those were the amounts paid.
MSC: To deny the appeal. (Murphy/Gruber: 5-0)
C. 1006 Dolores St. U001-13A
The tenants’ petition alleging an improper utility passthrough was
denied. However, claims of unlawful rent increase in the amount of $1,300.00
and decreases in housing services in the amount of $190 were granted. The
landlords appeal, claiming that because the notice of hearing was not forwarded
in a timely manner, a landlord with sufficient knowledge of the facts was
not present at the hearing; letters submitted by the tenants as evidence constituted
inadmissible hearsay; the tenant failed to submit checks to substantiate her
claim, only providing bank statements; the tenants were not inconvenienced
by the painting of their room; there has always been only one refrigerator;
and cable TV was never part of the rental agreement.
MSC: To deny the appeal. (Marshall/Becker: 3-2; Gruber, Murphy
dissenting)
D. 1269 - 3rd Ave. T001-88A
The tenants’ petition alleging unlawful increases in rent was granted
and the landlord was found liable to the tenants in the amount of $2,550.00
On appeal, the landlord asserts that the hearing officer should have refunded
the rent overpayments proportional to the amount of rent paid by each tenant
and the length of time they had resided on the property.
MSC: To deny the appeal. (Marshall/Becker: 3-2; Gruber, Murphy
dissenting)
E. 1629 McAllister St. #203 U001-14R
The landlords’ petition seeking certification of capital improvement
costs to 9 of 13 units was granted, in part. One tenant appeals the decision
on the grounds of financial hardship.
MSC: To accept the appeal and remand the case for a hearing
on the tenant’s claim of financial hardship. (Becker/Murphy:
5-0)
F. 25 Murray St. U001-15R; U001-17A
The landlord’s appeal was filed 4 days late because, apparently,
the landlord is not a native English speaker and needed assistance in filing
the appeal.
MSC: To find good cause for the late filing of the appeal.
(Becker/Marshall: 5-0)
The tenants’ petition alleging unlawful increases in rent was granted
and the landlord was found liable to the tenants in the amount of $1,600.00.
On appeal, the landlord maintains that single family dwellings are not under
rent control; that the tenants are in breach of the lease terms regarding
the number of occupants allowed in the unit; and there had not been a rent
increase since 1991. The tenants also appeal, asserting that the decision
is in error regarding the amount of the refund because they had paid the noticed
rent increase pending issuance of the decision.
MSC: To deny the landlord’s appeal. (Becker/Marshall: 5-0)
MSC: To accept the tenants’ appeal on the issue of the amount
owing from the landlord to the tenants; a hearing will be held only
if necessary. (Marshall/Becker: 5-0)
G. 41 Lupine Ave. U001-15A
The landlords’ appeal was filed 2 days late because the landlords
were on vacation at the time the decision was mailed and the landlords’
attorney made a mistake when calendaring the filing deadline for the appeal.
MSC: To find good cause for the late filing of the appeal.
(Becker/Marshall: 5-0)
The landlord’s petition for a rent increase in the amount of $500.00
for this Newly Covered Unit was denied; however, an 11.2% rent increase based
on the past rent history of the unit was granted. On appeal, the landlord
asserts that: the hearing officer did not sufficiently take into account the
neighborhood in which the subject unit is situated, nor the physical layout
of the subject unit; the hearing officer failed to exercise her discretion
to extrapolate comparable values on units, making adjustments for size and
amenities; and the hearing officer should have permitted the landlord petitioner
to augment the record.
MSC: To deny the appeal. (Becker/Marshall: 5-0)
H. 1335 - 38th Ave. #4
The tenant’s appeal was filed 4 days late without explanation.
MSC: To find good cause for the late filing of the appeal.
(Gruber/Murphy: 5-0)
The tenant’s petition alleging a decrease in housing services due
to the failure of the landlord to provide allegedly promised parking was denied
because the hearing officer found that the tenant’s lease did not include
a garage nor was additional consideration paid by the tenant for garage space
after the commencement of the tenancy. The tenant appeals, claiming that tenants
have always been entitled to garage space based on their seniority in the
building, that he has lived in the building the longest, and that the landlord
should enforce the "long-standing practice concerning the garage."
MSC: To deny the appeal. (Gruber/Murphy: 5-0)
I. 563 Columbus Ave. U001-16A
The tenant’s petition alleging a substantial decrease in housing
services due to the lack of heat in his unit was granted and the landlord,
who failed to appear at the hearing, was found liable to the tenant in the
amount of $12,600.00. On appeal, the landlord claims that he failed to appear
at the hearing because he and the tenant had entered into a settlement of
the claim raised in the petition.
MSC: To accept the appeal and remand the case for a new hearing.
(Murphy/Gruber: 4-1; Becker dissenting)
J. 1616 Taylor St. #7 U001-21R
The landlord’s petition for rent increases based on increased
operating expenses to 7 units was granted, resulting in 7% increases in the
tenants’ base rents. One tenant appeals the decision on the grounds of
financial hardship.
MSC: To deny the appeal. (Gruber/Murphy: 3-2; Becker, Marshall
dissenting)
VI. Public Hearing
Proposed Amendments to Rules and Regulations Sections 4.10 (Notice),
4.12 (Banking) and 2.15 (Per Diem Compensation)
A Public Hearing on proposed amendments to the Rules and Regulations
was convened at 7:15 p.m. and concluded shortly thereafter since no members
of the public appeared to testify. The amendments to Sections 4.10 and 4.12
allow hearing officers to apply the "de minimus rule" to excessive rent increases
of .5% or less not only due to "rounding" where the landlord has acted in
good faith. The change to Section 2.15 increases the amount that Commissioners
are reimbursed for attending meetings of the Board. The new language is as
follows:
Section 4.10 Notice
(b) Any rent increase which does not conform with the provisions
of this Section shall render the entire rent increase null and void, unless
the amount requested equals no more than the allowable annual and banked
rent increase(s), provided, however, that in the event such increases are
given in a good faith effort to comply with the Ordinance and Regulations
and do not exceed limitations by more than one-half of one percent of the
prior base rent, Hearing Officers shall readjust the base rent to reflect
the proper percentage increase.
Section 4.12 Banking
(a) A landlord who refrains from imposing an annual rent increase,
or any portion thereof, may accumulate said increase and impose that amount
on or after the tenant’s subsequent rent increase anniversary date; however,
the rent may be increased only one time every twelve (12) months. This banked
amount may only be given at the time of an annual increase. Only those increases
which could have been imposed on, or subsequent to, April 1, 1982, may be
accumulated. A full 12 months must have elapsed from the date that an annual
rent increase, or a portion thereof, could have been imposed before this
banking section becomes applicable. Banked increases shall not be compounded
and shall not be rounded up; provided, however, that in the event that a
banked increase exceeds limitations by no more than one-half of one percent
of the prior base rent and such increase was given in a good faith effort
to comply with the Ordinance and Regulations, Hearing Officers shall readjust
the base rent to reflect the proper banked amounts.
MSC: To approve the proposed changes to Rules and Regulations
Sections 4.10 and 4.12. (Murphy/Gruber: 5-0)
Section 2.15 Per Diem Compensation
Each member shall receive $75.00 for each Board meeting attended if
the meeting lasts for three hours or more in a single twenty-four hour period,
$50.00 if the meeting lasts for more than one to three hours in a single
twenty-four hour period, and $25.00 if the meeting lasts one hour or less
in a single twenty-four hour period. If a member or the alternate is not
in attendance for an entire meeting, compensation shall be determined by
reference to the actual aggregate time in attendance.
MSC: To approve the proposed amendment to Rules and Regulations
Section 2.15. (Gruber/Murphy: 5-0)
VII. Director’s Report
Executive Director Grubb informed the Commissioners that Senate Bills
1098 and 948 were passed by the State legislature and are awaiting the Governor’s
signature. Certain provisions of these bills will require amendments to the
Ordinance changes recommended by the Rent Board to the Board of Supervisors
concerning the Ellis Act and Costa-Hawkins. The Office of the City Attorney
has decided to seek depublication of the recent appellate decision concerning
Golden Gateway, but not to appeal the decision.
VIII. Old Business
Proposed Amendments to Rules Section 6.15 in Conformity With Legislation
Regarding Replacement Roommates Sponsored by Supervisor Leno
Discussion of this issue was continued to the Special Legislative Meeting
of the Board to be held on Monday, September 27th.
IV. Remarks from the Public (cont.)
Tenant Vesta Kirby, whose hardship appeal was denied earlier in the meeting,
explained more about the personal circumstances that led to her filing of
the appeal. Jim Hurt, who is applying for a Hearing Officer position, asked
whether Monday’s legislative session was open to the public. Russell Ledwell
inquired as to the difference between Hearing Officers and Administrative
Law Judges, and was informed that they are the same, but that the Ordinance,
Regs., forms and the agency’s informational materials have not yet been conformed
to reflect the change in job title.
IX. Calendar Items
September 27, 1999 - SPECIAL LEGISLATIVE SESSION
Interest Rate When Capital Improvement Work is Financed With a Variable
Rate Mortgage
Rules and Regulations Section 6.14
Rules and Regulations Section 6.15 (The Leno Legislation)
Costa-Hawkins
Ellis Act Amendments
October 5, 1999
9 appeal considerations post. from 9/7/99)
Old Business: Rules Section 6.15 (The Leno Legislation)
X. Adjournment
President Wasserman adjourned the meeting at 7:35 p.m.