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September 01, 1998

September 01, 1998B>

 

 

 

MINUTES OF THE REGULAR MEETING OF
THE SAN FRANCISCO RESIDENTIAL RENT
STABILIZATION & ARBITRATION BOARD,

Tuesday, September 1, 1998 at 6:00 p.m. at
25 Van Ness Avenue, Suite 70, Lower Level

  1. Call to Order

    President Wasserman called the meeting to order at 6:11 p.m.

  2. Roll Call

      Commissioners Present:
        Becker; Bierly; Gruber; Marshall; Mosser; Murphy; Wasserman.
      Commissioners not Present:
        Lightner.
      Staff Present:
        Grubb; Wolf.

      Commissioner Justman appeared on the record at 6:25 p.m.;
      Commissioner Moore arrived at 6:30 p.m.

  3. Approval of the Minutes

      MSC: To approve the Minutes of August 18, 1998. (Becker/Marshall: 5-0)

  4. Remarks from the Public

    1. A tenant who filed a Report of Alleged Wrongful Eviction because he believes that his landlord is retaliating against him inquired as to the status of his case.

    2. The landlady involved in the case at 1451-1/2 Shotwell St. (T001-09A) expressed her belief that the description of her appeal was stated incorrectly on the Agenda.

    3. The attorney for the landlord in the case at 1231 - 11th Ave. #2 (T001-07A) informed the Commissioners that his client has no objection to the matter being continued in order to give the tenant a chance to respond to the landlord’s recent submission.

  5. Consideration of Appeals

    1. 825 Pine St. #12 T001-03R

      The tenant’s petition alleging substantial decreases in housing services, the landlord’s failure to repair and an improperly calculated PG&E passthrough was dismissed due to his failure to appear at the properly noticed hearing. On appeal, the tenant requests another hearing, because a request for postponement had been made three days prior to the hearing. The tenant claims that it was impossible to fax in a written request, and that his pager was inoperable on the day of the hearing.

        MSC: To recuse Commissioner Gruber from consideration of this appeal. (Murphy/Marshall: 5-0)

        MSC: To accept the appeal and remand the case for a new hearing. (Becker/Marshall: 5-0)

    2. 1830 Taylor St. T001-02R

      The landlords’ petition for certification of capital improvement costs was granted, in part, resulting in a monthly passthrough in the amount of $37.88. The tenant appeals the decision on the grounds that: the penthouse portion of her unit was not been approved for residential use until after the completion of the work; a good deal of the work was necessitated by the landlords’ deferred maintenance, which also caused the costs to be greater; the cost of replacing the roof was not fair and reasonable; and the replacement of a back yard area with a concrete patio resulted in a diminution of the value of the property, rather than an improvement.

        MSC: To deny the appeal; the tenant is advised that she may file a tenant petition for arbitration if she believes that she has suffered a substantial decrease in housing services due to the change in use of the back yard. (Gruber/Murphy: 5-0)

    3. 412 Texas St. T001-05A

      The landlord’s petition for certification of the costs of capital improvement work was granted, in part, resulting in a monthly passthrough in the amount of $70.49. However, costs associated with a new deck below the tenant’s unit and adjacent to the landlord’s unit were denied, because the hearing officer found that the tenant did not have equal access to and use of the deck. On appeal, the landlord asserts that the deck is freely accessible to both flats through an enclosed, exterior back stairwell; that the tenant committed perjury in claiming that he has to go through a laundry room in order to reach the deck; that documentation of the higher amount requested for exterior painting will be provided upon receipt of a copy of a second check from the bank; and that expenses on the building, including debt service, have increased tremendously.

        MSC: To deny the appeal except to remand the case to the hearing officer on the issue of the costs allowed for exterior painting, in light of the additional documentation submitted by the landlord. (Becker/Marshall: 4-1; Gruber dissenting)

    4. 1441 Clay St. #5 & #12 T001-06A

      The tenant’s petition alleging a substantial decrease in housing services was denied because the hearing officer found that the tenant had failed to prove that the value of a garage space that the tenant no longer had use of was more than the $145.00 compensation that the tenant received from the landlord. However, the landlord was found liable to the tenant in the amount of $3,048.72 due to unlawful rent increases on the garage. The landlord’s petition requesting a determination as to whether the tenant additionally occupies another unit in the building was also denied, as the hearing officer found that the tenant is entitled to the "exclusive use and occupancy" of both units. On appeal, the landlord asserts that the hearing officer erred in finding that the tenant must have abandoned a rental unit in order to have "vacated" it; that a tenant should not be entitled to the protections of the Rent Ordinance on units which the tenant subleases, but does not occupy; that at the time the garage space was separately rented, the Rent Board did not impose the same annual limitations on garage rents that were in effect for residential rental units; that the tenant specifically withdrew her claim of unlawful rent increase; and that the hearing officer erred in failing to calculate allowable banking on the garage.

        MSF: To deny the appeal. (Becker/Marshall: 2-3; Gruber, Justman, Murphy dissenting)

        MSC: To deny the appeal except to remand the case to the hearing officer on the record to allow the rent increases on the garage that occurred prior to the issuance of the May 1, 1984 Board Decision on Appeal clarifying that rent increases on garages are subject to the same annual rent increase limitations as residential rental units. (Justman/Becker: 5-0)

    5. 99 Lupine St. #201 & #301 T001-04 & -06R

      The tenant’s appeal (unit #301) was filed 18 days late because she was out of the country when the Decision of Hearing Officer was mailed.

        MSC: To find good cause for the late filing of the appeal. (Marshall/Becker: 5-0)

      The landlord’s petition for certification of capital improvement costs was granted only in part. The costs of new windows which proved to be defective and were subsequently replaced were disallowed as being of no benefit to the tenants; the replacement windows were not certified at this time because they are not water-tight and allow for leakage into the units. Two tenants appeal the decision. The tenant in unit #301 objects to certification of any costs connected to either of the window installation projects, which costs were disallowed by the hearing officer; claims that the work was necessitated by the landlord’s deferred maintenance; and alleges a continuing leak, despite the fact that a new roof has been installed on the building. The tenants in unit #201 object to the certification of any costs associated with the new windows; complain of long-standing leaks in their unit; and point out that they paid the passthrough amount originally noticed by the landlord, rather than the amount approved by the hearing officer.

        MSC: To deny both appeals. (Murphy/Gruber: 5-0)

    6. 3822 - 19th St. #6 T001-05R

      The landlords’ petition for certification of capital improvement costs to the tenants in eight units was granted, in part, resulting in a monthly passthrough in the amount of $84.86. 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/Gruber: 5-0)

    7. 553 Sanchez St. T001-08A

      The landlord’s appeal was filed one day late because he claims to have attempted to obtain additional information from the hearing officer, and failed to receive a timely response.

        MSC: To find good cause for the late filing of the appeal. (Becker/Gruber: 5-0)

      The landlord’s petition for a rent increase based on increased operating expenses was denied because the hearing officer found that the landlord’s expenses actually went down from the base year to the comparison year. On appeal, the landlord claims that the hearing officer erred in calculating the amount of the base year loan payments by including payments that were posted but subsequently reversed because the payment checks were drawn against insufficient funds.

        MSC: To accept the appeal and remand the case to the hearing officer to sort through the documentation provided to find and allow legitimate costs for the time period when they were incurred; and to allow the costs of the third loan only if it was not renegotiated in order to produce exaggerated results pursuant to Rules and Regulations Section 6.10(a). A hearing will be held only if necessary. (Marshall/Becker: 5-0)

    8. 1231 - 11th Ave. #2 T001-07A

      The tenant’s petition alleging unlawful increases in rent was granted and the landlord was found liable to the tenant in the amount of $1,699.20. On appeal, the landlord maintains that, out of compassion for the tenant’s financial situation, she failed to impose rent increases to which she was entitled; that she acted in good faith and relied on erroneous information from Rent Board staff in calculating the annual increases; that determining the increases to be null and void results in a forfeiture; and that the decision creates a financial hardship for her.

      Since the tenant had not had a chance to respond to a late submission by the landlord, it was the consensus of the Commissioners to continue consideration of this case.

    9. 1451-1/2 Shotwell St. T001-09A

      The tenant’s petition alleging an unlawful increase in rent was granted and the landlord was found liable to the tenant in the amount of $1,900.00. On appeal, the landlord claims that the tenant fraudulently entered into a lease at a higher rent, as the result of negotiations between the parties to avoid an owner-occupancy eviction. Since the rent increase was found to be null and void, the landlord believes that the lease between the parties should also be found to be of no force and effect, so that the tenancy would revert to month-to-month and she could now evict for owner-occupancy.

        MSC: To deny the appeal. (Becker/Marshall: 5-0)

  6. Communications

    In addition to correspondence concerning cases on the calendar, the Commissioners received the following communications:

    1. A letter from Attorney Robert Copeland asking that the Board file an Amicus Brief in the eviction case in which he is the tenant (R007-43E & R001-34E). Judge Williamson issued an Order Granting Writ of Mandate on July 13, 1998, ruling that the owner, George Hoffberg, could not evict for the use of more than one unit as his principal place of residence. Mr. Hoffberg has petitioned the Court of Appeal for a Writ overturning Judge Williamson’s ruling. This issue will be discussed at the next Board meeting.

    2. A letter from landlord Allen Chase informing the Board that his tenant has moved out because he was unwilling to waive the absolute prohibition against subletting in his lease without an increase in rent, which flies in the face of the null and void provisions of the Rent Ordinance. The Board has asked the City Attorney for an opinion on this issue.

    3. An article from the S.F. Independent regarding the response of the landlord community to recently enacted and proposed restrictions on owner-occupancy evictions.

    4. The Complaint in the case of Coronado v. City of S.F. (U.S. District Court Case No. 98-2564 VRW), in which the Commissioners, Hearing Officer Gilbert and the Mayor were individually sued, which was dismissed by Judge Walker.

    5. A letter from Attorney Gary Mogil inquiring as to the possibility of collecting attorneys’ fees for prevailing in an action before the Rent Board.

  7. Director’s Report

    Executive Director Grubb informed the Commissioners that legislation placing certain aspects of tenant-based rental assistance programs such as Section 8 under Rent Board jurisdiction went into effect on August 30th. The Board members expressed their unequivocal support for increased staffing in order to provide services to the tenants in these 7,000 units. Additionally, he told them that the office is in the process of hiring a new independent estimator for capital improvement cases, and that landlords are no longer required to pay an estimator fee at the time of filing. Should the services of an estimator become necessary, the fee will be collected at that time.

  8. Old Business

    1. 1213 B York St. T001-01A (considered on 8/18/98)

      This case involved a Landlord Petition for Extension of Time to do Capital Improvement Work, which was denied by the hearing officer, who found that the landlord had not been acting in good faith. Commissioners Moore and Marshall had requested a report from staff as to whether this would be an appropriate case for referral to the Office of the District Attorney. Deputy Director Wolf informed the Board that she, Hearing Officer Brandon and Senior Hearing Officer Gartzman felt that it was not, especially since the tenants were represented by competent counsel. Ms. Wolf also reported on a meeting that Ms. Gartzman and Supervisor Pedro Ruiz had with Deputy District Attorney David Moon regarding the difficulties involved in criminal prosecutions under the Rent Ordinance. Mr. Moon has volunteered to assist in drafting some possible Ordinance amendments that could be helpful for future criminal prosecutions. Mr. Ruiz will draft a letter to Mr. Moon taking him up on his offer.

    2. "Remarks from the Public" Portion of the Agenda

      This issue was continued to the meeting on September 15th in order for the Commissioners to review a Confidential Memorandum from the Office of the City Attorney.

    3. Rules and Regulations Section 7.12(b) (The "6-Month Rule")

      This issue was continued to the September 15th meeting in order for Commissioner Marshall to type up and distribute her proposed amendment.

    4. The tenant in the case at 1231 - 11th Ave. #2 (T001-07A) asked that consideration of his case be continued to the October 6th meeting in order that he be able to attend.

    5. The tenant involved in the case at 1441 Clay Street #5 & #12 (T001-06A) informed the Board that, although unconventional, she really does live in two small units at the subject building. She told the Commissioners not to "feel bad" about letting her retain the two apartments that she has had for 25 years.

    6. David Gelman, attorney for the landlord at 1441 Clay Street, expressed his concern that the hearing officer in that case failed to make a determination as to whether the tenant was actually in occupancy at both of the subject units, and seemed to say that a tenant had to actually "abandon" a rental unit in order to trigger vacancy decontrol. He also applauded Executive Director Grubb’s prompt response in returning phone calls.

  9. Calendar Items

      September 8, 1998 - NO MEETING

      September 15, 1998

        6 appeal considerations (2 cont. from 8/18/98)
        Old Business:
          A. "Remarks from the Public" Portion of the Agenda
          B. Rules and Regulations Section 7.12(b) (The "6-Month Rule")
          C. Litigation Report

      September 22 & 29, 1998 - NO MEETINGS

  10. Adjournment

    President Wasserman adjourned the meeting at 8:15 p.m.

Last updated: 10/9/2009 11:26:14 AM