Proposition H Advisory #2 - 12/1/00

Proposition H Advisory #2 - 12/1/00December 1, 2000 Proposition H Update

On November 20,2000 the San Francisco Apartment Association, the Coalition for Better Housing and nine individual owners filed a lawsuit challenging the constitutionality of Proposition H. The lawsuit (Quigg v. City and County of San Francisco, Superior Court Case No. 316928) claims that Proposition H is unlawful because it does not allow owners who do not have base year income and expense data from 1978 to obtain a constitutionally required fair return, and that it also unlawfully applies retroactively to cases prior to the effective date of the Proposition. The owners are also requesting a preliminary injunction to prevent enforcement of Proposition H until the court determines whether or not it is valid. A hearing on the request for a preliminary injunction is presently set for December 20,2000, but is subject to change. The City"s opposition papers are due to be filed five court days before the hearing date. We will post the court"s ruling as soon as it is received.

The Rent Board will continue its discussion of implementation issues regarding Proposition H at the Board meeetings on December 5th and 19th. Proposition H will become effective 10 days after the Board of Supervisors certifies the election results. Thus, if the Board certifies the results at its December 11 meeting, the effective date will be December 21,2000. We will post the effective date as soon as it is known.