April 21, 2009

Commissioner Murphy appeared on the record at 6:10 p.m.; Commissioner Marshall arrived at the meeting at 6:14 p.m.

MSC: To approve the Minutes of March 31, 2009.

(Mosbrucker/Henderson: 5-0)

A. Tenant Roy Bowers of the Herbert Hotel (161 Powell St.; AT090098) told the Board that he felt it necessary to file an appeal so that the hotel tenants could "get their lives back." Mr. Bowers feels that the hotel is being compromised by management and young students. He asked that the Commissioners consider all the evidence and "do the right thing."

The tenants' petition alleging decreased housing services was granted, in part, and the landlord was found liable to the tenants in the amount of $4,877.95 due to habitability defects on the premises. The landlord appeals, claiming that: the tenants' complaints were unfounded and unproved; and the tenants failed to pay rent for over six months and owe the landlord in excess of $10,000.00.

The tenant's request for a deferral of an approved capital improvement passthrough was denied because the Administrative Law Judge (ALJ) found that the tenant was not credible in reporting and explaining his income. On further appeal, the tenant claims that: there are factual errors in the decision; his credit card debt is due to previous personal and recent business credit debt; his unemployment income makes him ineligible for Food Stamps; and he has been as transparent as possible in explaining his financial circumstances.

The landlord's petition for approval of utility passthroughs to 2 of 5 units was denied because the ALJ found that the landlord had been reimbursed by non-party tenants for a portion of the comparison utility costs and that there had therefore been no increase. The landlord appeals, arguing that: the ALJ erred in determining the amount that he had been reimbursed; the decision is in error as to the number of rooms in the building; and the file had been temporarily lost prior to the hearing.

The tenant's petition alleging unlawful rent increases and decreased housing services was granted and the landlord was found liable to the tenant in the amount of $5,337.35 for rent overpayments and $860.00 for habitability problems in the subject unit. The landlord appeals, claiming that: the tenant agreed to pay additional rent increases for bond and utility passthroughs, operating expenses and capital improvements; the tenant has violated the terms of her rental agreement; and the tenant's appeal has no merit and is unjustified.

MSC: To deny the appeal. (Henderson/Mosbrucker: 5-0)

The tenant in unit #102 filed his appeal four days late because the tenant was being treated for asthma at the time the decision was issued.

The landlord's petition for rent increases to 17 of 49 units was granted. The tenant in unit #405 appeals the decision on the grounds that: he is paying too much rent because his unit is supposed to be a studio, but is not; and he is suffering from decreased housing services. The tenant in unit #102 appeals the decision on the grounds of financial hardship.

The tenant's petition alleging an unlawful rent increase was denied because the ALJ found that the rent was temporarily discounted by the landlord from the prior agreed-upon base rent amount, and that the restoration of the prior base rent amount did not constitute a rent increase. The tenant appeals, alleging that: the ALJ exhibited bias towards the landlord during the hearing; and the increase from $900 to $1100 was not based on any discussion of a temporary reduction because the landlord had not had time to prepare the unit.

The Master Tenant's appeal was filed one day late because she had to travel out of state for her grandmother's funeral.

The subtenant filed a petition alleging unlawful rent increases and decreased housing services. The ALJ found that the subtenant's rent was lawful and proportionate. However, the Master Tenant was found liable to the subtenant in the amount of $202.50 due to the subtenant's having no access to the shared mailbox and subsequent failure to receive mail in a timely manner. The Master Tenant failed to appear at the hearing, and on appeal provides a Declaration of Non-Receipt of Notice of Hearing, alleging that there have been mail delivery problems at the unit for over eighteen months. The Master Tenant also claims that: she has always been the only tenant with a key to the mailbox, which was the agreed-upon arrangement at the time the subtenant moved in; and the problems with mail delivery have not been the result of any negligence on her part.

The tenant's petition alleging a substantial decrease in housing services due to the reconfiguration of the lounge area in this residential hotel was denied. The tenant appeals, maintaining that: the changes to the lounge area have made it so that the tenants cannot use and enjoy the lounge; the facts presented at the hearing do not support the conclusions reached by the ALJ; the relocation of the television to the laundry room denies the tenants use of the television; the tenants are suffering a non-economic hardship related to their general health and well-being by having lost the opportunity for social interaction and a feeling of community; and the landlord presented no compelling reason for the changes that were made.

After discussion, it was the consensus of the Commissioners to continue consideration of this case in order for staff to contact the parties and discuss possible settlement.

The tenant's petition alleging decreased housing services was granted, in part, and the landlord was found liable to the tenant in the amount of $245.00 for a defective door buzzer and peeling exterior paint. A failure to repair claim was denied. The landlord appeals, asserting that: the ALJ consistently led the tenant during the hearing; the ALJ did not take into account the time needed to obtain bids and permits; and there is no basis for the amounts of the rent reductions.

In addition to correspondence concerning cases on the calendar, the Commissioners received copies of articles from the S.F. Chronicle and BeyondChron.

Executive Director Wolf told the Board that the office received no Ellis filings in the month of March. She also reported that the Senate Judiciary Committee passed SB 290 (Leno), which would repeal the sunset and make permanent the requirement that landlords give tenants a 60-day notice for a no-fault eviction.

B. Leon Ribay, the landlord at 643 Oak #4 (AL090099), asked the Board to reconsider their denial of his appeal. Mr. Ribay maintained that the case constitutes an "injustice," since he and the tenant spoke about the rent increase each year and the tenant agreed to it. Mr. Ribay believes that it is more economical to come to an agreement with the tenant, and avoid the petition process. He said that the tenant has reduced her rent payment prematurely.

Commissioner Murphy distributed a draft proposed new Rules ß4.15, which deals with the issue of restoration of the original rental amount after a voluntary reduction by the landlord. This issue will be discussed at the next meeting.

President Gruber adjourned the meeting at 7:00 p.m.