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February 18, 1997

February 18, 1997B>

 

 

 

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

Tuesday, February 18, 1997 at 6:00 p.m. at
25 Van Ness Avenue, Suite 70, Lower Level

  1. Call to Order

    President Becker called the meeting to order at 6:05 p.m.

  2. Roll Call

    Commissioners Present: Becker; Bierly; Lightner; Marshall; Mosser; Palma; Wasserman.

    Commissioners not Present: Moore.

    Staff Present: Grubb; Wolf.

    Commissioner Gruber appeared on the record at 6:10 p.m.; Commissioner Murphy appeared at 6:15 p.m.

  3. Approval of the Minutes

    MSC: To approve the Minutes of February 4, 1997.

    (Marshall/Palma: 5-0)

  4. Consideration of Appeals

    1. 2890 California St. R001-40A &
      R001-67R thru -78R

      The landlords’ petition for certification of capital improvement costs was granted, in part, resulting in a total passthrough in the amount of $167.31 to the tenants in twenty-four units. Three tenant petitions claiming decreased housing services were also partially granted. On appeal, the landlord claims that the hearing officer erred in granting a rent reduction for wet walls and related problems through August, 1994, when exterior renovation work which abated the condition was concluded in May, 1993. One tenant appeals the portion of the decision certifying capital improvement costs on the grounds of financial hardship -- she and eleven other tenants maintain on appeal that the hearing officer was biased against them because he has a business relationship with the landlord’s agent; that the capital improvements were necessitated by the landlords’ deferred maintenance; that certain costs were improperly amortized; and that some of the work constituted repair rather than capital improvements. Additionally, one tenant claims that there are factual inaccuracies in the decision regarding her decreased housing service claims, including her alleged failure to provide access to the landlords in order for them to remedy the conditions. Another tenant objects to the rent reduction amounts granted as insufficient; and disputes the hearing officer’s finding that adequate security was provided in the building during the period of renovation work.

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

      MSC: To accept the landlords’ appeal (R001-40A) to determine which repair project cured the problems related to the wet walls in tenant Akeroyd’s unit (#102) and terminate the rent reductions accordingly; and to accept the tenants’ appeals (R001-67R thru -78R) only on the issue of proper amortization of the concrete work related to the exterior painting and waterproofing, which shall be for ten years. No further hearing will be held on these issues, and the record will be re-opened only if necessary. (Marshall/Palma: 5-0)

      MSC: To accept the appeal of tenant Chiara in unit #501 (R001-78R) and remand the case for a hearing on the issue of financial hardship. (Marshall/Palma: 3-2; Gruber, Lightner dissenting)

      MSC: To deny the separate appeal of tenant Akeroyd in unit #102 (R001-67R). (Gruber/Lightner: 5-0)

      MSC: To deny the separate appeal of tenant Carleton in unit #405 (R001-75R). (Marshall/Gruber: 5-0)

    2. 236-1/2 San Jose Ave. R001-41A

      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 $3,178.75. The hearing officer determined that, although a Certificate of Occupancy for the subject premises had not been issued until 1996, the premises continue under Rent Board jurisdiction because mere legalization of an existing housing unit does not qualify for exemption as new construction. The landlord appeals, maintaining that the hearing officer’s decision contradicts information that he and his counsel received from Rent Board staff members.

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

    3. 818 Hyde St. #5 R001-79R

      The tenant’s current appeal was filed approximately six weeks late. The tenant had timely filed a prior appeal to the decision certifying capital improvement costs on the grounds that she had not been provided sufficient opportunity to raise her objections, which had to do primarily with claims of decreased housing services. The instant appeal was filed fifteen days from the mailing of the Notice of Action on the prior appeal, which was denied. The tenant maintains that, at the time of filing the prior appeal, she did not know that she could raise financial hardship as a grounds for appeal.

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

      The landlord’s petition for certification of capital improvement costs was granted, resulting in a monthly passthrough in the amount of $24.39 to the tenants in four units. One tenant appeals 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.

      (Marshall/Palma: 5-0)

    4. 1077 - 1081 Ashbury St./1042 Clayton St. R001-80R thru -84R

      Seven tenant petitions alleging unlawful rent increases exceeding the limitations under the Rehabilitation Assistance Program (RAP) were denied. The hearing officer found that the landlord had properly calculated the increase in the CPI since 1973 and correctly allocated the actual increased costs for the subject units as required pursuant to Ordinance Section 32.73; and that the defenses specified in Ordinance Section 32.73-1 only apply to properties in areas designated as under RAP jurisdiction after July 1, 1977, which is not the case for the subject building. On appeal, the tenants assert that: costs for work in the nature of capital improvements should be separated from the "maintenance" category; the increases were effectuated in "bad faith", in that they were imposed in order to make the building saleable; and the landlord should not be able to benefit from a "decade of deferred maintenance" by carrying out all repairs in one year, thereby creating exaggerated results.

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

      MSC: To accept the appeals and schedule a Board hearing on the issues raised by the tenants in their appeals. (Marshall/Becker: 3-2; Gruber, Lightner dissenting)

  5. Communications

    In addition to correspondence concerning cases on the calendar, the Commissioners received a new copy of the Rent Ordinance containing recent amendments concerning lead remediation, passthroughs and temporary evictions to eliminate lead hazards.

  6. Old Business

    1. Codification of Artist Live/Work Policy

      The Commissioners continued their discussion of possible codification of the Board’s Artist Live/Work Policy, which was adopted in 1984, and passed the following motion:

      MSC: To hold a Public Hearing on March 11, 1997 at 6:00 p.m. to consider the following possible amendments to Rules and Regulations Section 1.17 (new language is underlined):

      Section 1.17 Rental Units

      "Rental Unit" means a residential dwelling unit, regardless of zoning or legal status, in the City and County of San Francisco and all housing services, privileges, furnishings including parking facilities supplied in connection with the use or occupancy of such unit which is made available by agreement for residential occupancy by a tenant in consideration of the payment of rent. The term does not include:

      (g) live/work units in a building where all of the following conditions have been met: (1) a lawful conversion to commercial/dwelling use occupancy (F-2/H) has occurred; (2) a Certificate of Occupancy has been issued by the San Francisco Department of Public Works after June 13, 1979; and (3) there has been no residential tenancy in the building of any kind between June 13, 1979 and the date of issuance of the Certificate of Occupancy. This term also shall not include commercially zoned space where there is incidental and infrequent residential use.

      (Becker/Marshall: 5-0)

    2. Election of Officers

      President Becker nominated current Vice-President Lightner for President of the Board and Commissioner Neli Palma for Vice-President. As Commissioner Palma declined the nomination, President Becker nominated Commissioner Wasserman for Vice-President, which was accepted. The nominations were accepted by acclamation and congratulations were extended all around.

  7. Remarks from the Public

    1. Robert Pender asked that the Minutes reflect the fact that the next meeting of the Tenants’ Network will be on February 19, 1997 at the First Unitarian Church at Franklin and Geary from 5:30 to 7:30 p.m.

    2. Glen Hildebrand asked that the Commissioners try and make the proposed regulations regarding the Board’s Artist Live/Work Policy "clear for folks in the real world."

    3. Sue Hildebrand extended her congratulations to the Board’s new officers and thanked outgoing President Becker for his hard work.

    4. A tenant inquired as to when the Board would be discussing the removal of housing units pursuant to Ordinance Section 37.9(a)(10) because he is currently facing an eviction for owner-occupancy [Ordinance Section 37.9(a)(8)].

  8. Calendar Items

    February 25, 1997 - NO MEETING

    March 4, 1997

    6 appeal considerations

    Old Business: Evictions Pursuant to Ordinance Section 37.9(a)(10)

  9. Adjournment

    President Lightner adjourned the meeting at 9:55 p.m.

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