June 17, 1997

President Lightner called the meeting to order at 6:10 p.m.

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

Commissioners not Present: Murphy.

Staff Present: Grubb; Wolf.

Commissioner Moore appeared on the record at 6:15 p.m.

MSC: To approve the Minutes of June 10, 1997.
(Palma/Marshall: 5-0)

1. 450A - 14th St. R001-59A

   The tenant’s petition alleging substantial decreases in housing services was granted and the landlord was found liable to the tenant in the amount of $4,765.00 due to serious habitability defects on the premises. On appeal, the landlord alleges that the hearing officer exhibited bias toward him; that the tenant failed to notify him regarding the problems in the unit; that the tenant’s complaints were retaliatory, in that they immediately followed a notice of rent increase and 3-Day Notice to Pay Rent or Quit; that it is unduly burdensome and unfair to expect landlords of Newly Covered Units under Proposition I to have kept complete repair records for a period prior to jurisdiction; that the evidence he submitted regarding repairs that were effectuated was completely ignored by the hearing officer; that since the tenant exercised the repair-and-deduct remedy on several occasions, the landlord had in effect already paid for the work; that the tenant failed to provide access to the unit in order for repairs to be effectuated; that the drainage and flooding problems were of extremely limited duration; and that all of the conditions were abated prior to the date of the hearing.

   MSC: To accept the appeal and remand the case to the hearing officer only to determine the dates that the conditions were abated and the rent reductions should cease; and to correct the dates specified for the problem regarding the kitchen sink. A hearing will be held only if necessary, at the discretion of the hearing officer. The appeal is denied as to all other issues. (Becker/Palma: 5-0)

2. 376 San Carlos R001-61A

   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 $370.00. On appeal, the landlord asserts that: the tenant is not being truthful regarding the conditions in the unit; the tenant has additional occupants in the unit, resulting in extremely high water bills; and the tenant is behind in her rent.

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

3. 165 Germania St. #165 R002-22R

   The landlord’s petition for rent increases based on increased operating expenses and certification of capital improvement costs was granted for the tenants in two units. One tenant appeals the decision on the basis of financial hardship.

   MSC: To accept the appeal and remand the case for a hearing on the tenant’s claim of financial hardship. (Marshall/Becker: 4-1; Lightner dissenting)

4. 424 Laurel St. R001-60A

   The landlords’ petition for rent increases based on increased operating expenses was denied because increases were in the categories of debt service and property taxes, and these owners had already received 7% base rent increases based on their acquisition of the building; and the landlords failed to adequately document claimed increased repair costs. On appeal, the landlords maintain that: the evidence provided should have been considered adequate and, if an opportunity had been provided, additional documentation could have been provided; the painting contractor’s failure to provide an invoice for the work is standard within the trade; the replacement stove and water heater were deemed to constitute capital improvement but are more properly considered operating expenses; and the operating expenses on the property have increased 54% over the comparison year and 100% over the base year.

   MSC: To accept the appeal and remand the case for a hearing before a new hearing officer with the following instructions to the landlord: documentation of the scope of work performed and sums expended shall be provided to the extent possible and, where there is not both an invoice and canceled check, an explanation shall be supplied; if the landlord requires additional time to procure documentation, he shall contact the Scheduling Coordinator immediately and the case will be taken off calendar until the landlord indicates that the petition is ready to go forward. (Lightner/Palma: 5-0)

5. 2109 Pine St. R001-62A

   The landlords’ petition for a 15.2% increase for this Newly Covered Unit under Proposition I was denied because the landlords failed to establish that no rent increases had been given prior to their purchase of the building on October 1, 1990. A rent increase in the amount of 7.2% was, however, granted. On appeal, the landlords allege that they were unaware that they would need to document the rent history for a period of time prior to their ownership, and request that they be allowed to do so now.

   MSC: To accept the appeal and remand the case for a new hearing. In the Decision on Remand, the hearing officer shall make a Finding as to whether this is an ongoing tenancy. (Marshall/Lightner: 5-0)

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

1. The Mediation Statistics and Summary of Mediation Agreements for the month of May, 1997. Commissioners Becker and Marshall inquired as to a mediated agreement wherein the tenant agreed to vacate the unit without compensation. Staff will report back on the circumstances surrounding this case.

2. Notice of Public Hearing for 6:00 p.m. on July 1, 1997: the Board will take public comment on proposed regulations providing for administrative dismissal of certain landlord petitions.

3. The Order Denying Supplemental Petition for Writ of Administrative Mandamus in the case of Hudson and Boesch v. S.F. Rent Board (Superior Court Case No. 965026 - 99 Jersey).

Executive Director Grubb reported that the budget for Fiscal Year ’97 - ’98 was approved by the Board of Supervisors. The budget provides for one additional counselor (already on staff) and an additional Hearing Officer: The hiring of the new Hearing Officer will be held in abeyance pending the office remodeling, hopefully by November.

The Commissioners were informed that City-wide recycling now includes colored paper. The Director asked that the Commissioners come to the next meeting with information regarding the number of tickets they would like to the Giants Doubleheader in the Mayor’s Box on July 27th.

June 24, 1997 - NO MEETING

July 1, 1997

1 appeal consideration

6:00 Public Hearing: Proposed Administrative Dismissal Regulations

Executive Session: Personnel Issues

President Lightner adjourned the meeting at 7:40 p.m.