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August 19, 1997

August 19, 1997B>

 

 

 

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

Tuesday, August 19, 1997 at 6:00 p.m. at
25 Van Ness Avenue, Suite 70, Lower Level

  1. Call to Order

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

  2. Roll Call

    Commissioners Present: Becker; Bierly; Gruber; Lightner; Marshall; Moore; Murphy.

    Commissioners not Present: Mosser; Wasserman.

    Staff Present: Grubb; Wolf.

    Commissioner Moore appeared on the record at 6:13 p.m.

  3. Approval of the Minutes

    MSC: To approve the Minutes of August 5, 1997 with the following correction: the last sentence under New Business on page 5 should reflect that the consensus of the Board was to set aside September 23, 1997 for a possible Public Hearing, rather than to schedule a Public Hearing on that date.

    (Becker/Murphy: 4-0)

  4. Remarks from the Public

    Prior to allowing public comment, President Lightner announced that there would be a change in the way this portion of the Agenda is conducted.

    Effective as of the August 19, 1997 meeting, the public was welcome to comment on any matter of interest to them, including matters scheduled on that evening’s Agenda. However, the public was cautioned that any evidence that was discussed would not be considered by the Commission in their consideration of any appeal. These changes were made to ensure compliance with the requirements of the Brown Act and Sunshine Ordinance. The following individuals then addressed the Board:

    1. Robert Pender announced that there would be a Public Hearing on the issue of making additional code violations misdemeanors on August 20, 1997 at 1:00 p.m. in Room 410 at City Hall.

    2. Gerda Fiske stated that the hearing officer erred and doubled the gross income of Jose Morales, the tenant involved in the hardship appeal concerning the property at 572 San Jose Ave. (S001-02A & S001-03R).

    3. Jose Morales spoke regarding his appeal in the above-referenced case, asserting that: three issues from his first appeal remain unresolved; it would be an imposition for him to have to get a roommate; and he shouldn’t have to work additional hours, seeing as how he is an injured senior citizen.

    4. Constance Kruk spoke in support of tenant Jose Morales, calling the current housing market "appalling."

    5. The landlord in the case at 572 San Jose, Ara Tehralian, informed the Board that this case has been going on for three years and it has created hardships for him as well. He expressed his belief that there are many ways that Mr. Morales could better his situation.

  5. Consideration of Appeals

    1. 2844 Lyon St. R001-71A
      (cont. from 8/5/97)

      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 $7,745.00 due to serious habitability defects on the premises. The landlord failed to appear at the hearing and maintained on appeal that the Notice of Hearing was sent to an incorrect address. Additionally, the landlord claimed that a $100.00 per month rent reduction due to lack of heat was excessive because the heat is defective but operative; that the common area lighting problem was corrected immediately after notice; that the cracked and broken windows are the fault of the tenant; that the tenant painted the unit with the wrong paint, which created peeling; that there is mildew in the unit due to the tenant’s failure to ventilate; and that the tenant’s filing of the petition was not in good faith but was in retaliation for the landlord’s service of a 3-Day Notice to Pay Rent or Quit. As the landlord had informed the Director that she would be sending the Board a copy of her Declaration of Non-Receipt of Notice, which she believed her attorney had already mailed to the Board, the Board continued consideration of this case from the meeting on August 5, 1997. The Declaration of Non-Receipt of Notice of Hearing was subsequently received.

      As there were several inconsistencies in the landlord’s communications regarding her correct address and notations in the file that she had been called twice regarding the hearing by staff, it was the consensus of the Board for staff to write a letter requesting clarification under penalty of perjury. The matter was therefore further continued to the meeting on September 16th.

    2. 572 San Jose Ave. S001-02A & S001-03R

      This case involves a Proposition I Affected Unit. The tenant’s petition alleging unlawful increases in rent due to capital improvement passthroughs not having been discontinued and having been improperly included in base rent was denied due to the equitable defense of laches. The landlord’s petition for a rent increase based on comparable rents was granted, resulting in a rent increase for the unit in the amount of $312.60 (from $339.00 to $651.60). The tenant’s appeal was accepted and remanded only on his claim of financial hardship. In the Decision on Remand, the hearing officer found sufficient evidence of financial hardship to waive the retroactive amount owed from the tenant to the landlord ($7,189.80), but ordered that the tenant commence payment of the approved rent increase as of July 1, 1997. Both the landlord and the tenant appeal the remand decision. The tenant maintains that factual and legal errors in the original Decision of Hearing Officer regarding the comparables rent increase should be reexamined; and asserts that the hearing officer erred in finding insufficient hardship to disallow all or part of the noticed increase. The landlord appeals the waiver of the retroactive amount owed in its entirety, maintaining that the tenant has the ability to repay the sum in installments.

      MSC: To recuse Commissioner Becker from consideration of this appeal. (Marshall/Murphy: 4-0)

      MSF: To deny both the landlord’s and tenant’s appeals. (Lightner/Gruber: 2-2; Marshall, Moore dissenting)

      Consideration of this case was therefore continued to the September 2, 1997 Board meeting.

    3. 1406 Pacific Ave. #4 S001-03A

      The landlord’s petition for a rent increase based on comparable rents was denied. The hearing officer found that the landlord had established the requisite extraordinary circumstances to justify a rent increase based on comparables, and that the rent for the subject unit was set low and kept low due to a special relationship and fraud. However, the landlord failed to meet his burden of proving what a comparable rent for the unit should be, instead providing somewhat unreliable evidence as to "market" rent for the unit. On appeal, the landlord claims that the decision is unsupported by the evidence.

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

      This matter was therefore continued to the Board meeting on September 2, 1997.

    4. 235 Greenwich St. S001-05R

      The tenant’s petition alleging substantially decreased housing services, failure to repair and an unlawful increase in rent was dismissed due to her failure to appear at the hearing. On appeal the tenant maintains that, when she received notice of a hearing on her landlord’s capital improvement petition, scheduled for a later date, she assumed that the hearing on her tenant petition had been canceled.

      MSC: To accept the appeal and remand the case for a new hearing. (Marshall/Becker: 4-0)

    5. 1000 Green St. #104 S001-07R

      The landlord’s petition for certification of capital improvement costs for 44 units was granted. One tenant appeals the decision, asserting that the base rent figure for her unit used by the hearing officer is incorrect, in that it includes prior capital improvement and PG&E passthroughs.

      MSC: To deny the appeal with the following instructions: the parties are encouraged to resolve the issue of the tenant’s rent history. If this is not possible, then the tenant should file a petition for arbitration. (Lightner/Gruber: 4-0)

    6. 1780 Filbert St. S001-05A

      The tenant’s petition alleging substantial decreases in housing services was granted, and the landlords were found liable to the tenant in the amount of $4,575.00 due to the lack of heat and waterproofing in the unit. The portion of the tenant’s petition alleging unlawful increases in rent was denied because the tenant failed to provide sufficient documentation of her rent history. On appeal, the landlords maintain that the rent reduction in the amount of $150.00 per month due to lack of heat is excessive considering that the rent for the unit is $567.84; and heat was provided to the unit promptly after receipt of written notice from the tenant. The landlords also assert that the amount of $3,750.00 due to leaks in the unit is unfair considering that there was a drought during much of the time period in question; the leaks were quite small; and they did not affect the tenant’s living quarters, but only the back porch area.

      MSC: To deny the appeal except to remand the case on the issue of when heat was actually restored to the unit. The parties are encouraged to reach an agreement as to the date this was accomplished and adjust the landlord’s liability for rent reductions accordingly. If no such agreement is received at the Rent Board office by September 30, 1997, then a hearing on this issue will be scheduled. (Marshall/Becker: 4-0)

    7. 634 - 18th Ave. S001-04A

      The tenant’s petition alleging unlawful increases in rent was granted, and the landlord was found liable to the tenant in the amount of $18,311.46. On appeal, the landlord asserts that the tenant is barred from recovery of the rent overpayments due to the equitable doctrines of laches, waiver and estoppel. She asserts, specifically, that: there is no evidence of retaliation against the tenant for her filing of the petition but, rather, a good faith owner-occupancy of the subject premises pursuant to the provisions of Ordinance Section 37.9(a)(8); the hearing officer’s conclusion that the landlord’s deceased husband had "unclean hands" is based upon hearsay and is unreliable; the death of the owner who managed the property constitutes real prejudice to the landlord; the tenant’s conduct over the years would lead any reasonable landlord to believe that the rent charges were proper and permissible; and fairness dictates that the amount of overpayment be reduced by one-half, on the theory that both parties are equally at fault, conditioned on the landlord’s prompt payment to the tenant.

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

      Consideration of this appeal was therefore continued to the September 2, 1997 Board meeting.

    8. 3239 - 17th St. #3 S001-07A

      The tenants’ petition alleging substantial decreases in housing services was granted, and the landlord was found liable to the tenants in the amount of $14,950.00 due to egregious conditions on the premises. No appearance was made by the landlord at the hearing. The property had been sold prior to the date of the hearing, and Notice of Hearing was sent to the prior owner and the mortgage company (California Mortgage and Realty Company) that had collected rent subsequent to the sale. On appeal, California Mortgage and Realty claims that the company is not an owner but, rather, a second lender that does not hold title to the property.

      After discussion, it was the consensus of the Board that this matter be continued to the next meeting in order for the Deputy Director to investigate ownership of the property and confer with the Senior Hearing Officer on policy in the event of an ownership change after a hearing has been held.

    9. 860 Geary St. #506 S001-06A

      The tenant’s petition alleging substantially decreased housing services due to noise from an upstairs neighbor was granted and the landlord was found liable to the tenant in the amount of $700.00 ($100.00 per month). The new owners of the property appeal on the grounds that they were not given notice of the hearing.

      MSC: To accept the appeal and remand the case to the same hearing officer for a new hearing. Prior to proceeding with the substance of the hearing, the hearing officer shall determine whether or not actual notice was given to the new owners of the building, even if under a different name. If actual notice was not received by these landlords, then the hearing shall proceed. In the event that these individuals did receive notice, the hearing shall be discontinued and the Decision of Hearing Officer shall become final. (Marshall/Lightner: 4-0)

    10. 16 Linda St. #5 S001-06R

      The tenant’s petition alleging a substantial decrease in housing services was dismissed due to his failure to appear at the hearing. On appeal, the tenant attaches a Declaration of Non-Receipt of Notice of Hearing, and provides evidence that his proper mailing address is a post office box.

      MSC: To accept the appeal and remand the case for a new hearing.

      (Becker/Marshall: 4-0)

  6. Communications

    In addition to correspondence regarding cases on the calendar, the Commissioners received the Mediation Statistics for the month of July and a new brochure (Fact Sheet #7) explaining how to calculate annual and banked rent increase amounts.

  7. Director’s Report

    Executive Director Grubb proudly announced the selection of Senior Hearing Officer Sandra Gartzman as a recipient of one of this year’s three Managerial Excellence Awards, given by the Mayor’s Fiscal Advisory Committee. Sandy will be honored at a luncheon at the St. Francis Hotel on October 28th.

  8. Calendar Items

    The Board agreed to schedule a meeting on September 23rd to discuss proposed amendments to the Rules and Regulations. Additionally, Deputy City Attorney Teresa Stricker-Croley will be asked to attend in order to discuss the "Remarks from the Public" portion of the Agenda.

    August 26, 1997 - NO MEETING

    September 2, 1997

    12 appeal considerations (4 cont. from 8/19/97)

    September 9, 1997 - NO MEETING

  9. Adjournment

    President Lightner adjourned the meeting at 8:50 p.m.

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